Onion Export in Bangladesh, UAE, Bhutan, Bahrain, Mauritius & Sri Lanka

Utkarsh Classes Last Updated 27-04-2024

Onion Export in Bangladesh, UAE, Bhutan, Bahrain, Mauritius & Sri Lanka

Economy 4 min read

The government has allowed the export of 99,150 metric tons of onions to six neighboring countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

This decision was taken to increase demand in the international market and make sure there are enough onions available domestically. The prohibition on onion export was imposed due to lower Kharif and Rabi crops in 2023-24, compared to the previous year.

Nodal Agency for export of Onions

The National Cooperative Exports Limited (NCEL) is responsible for exporting onions to six countries. They obtain onions from within the country and sell them through an e-platform at L1 prices, then supply them to the agency or agencies nominated by the destination country at the negotiated rate on 100% advance payment basis.
The rates offered by NCEL to buyers take into account market and prices present in the international and domestic markets.
Maharashtra, being the largest producer of onions in the country, is the primary supplier of onions sourced by NCEL for export.
The quota allocated for export to the six countries is supplied according to the destination country's requisition.
In addition, the government has allowed the export of 2000 MT of white onion, specially cultivated for export markets in the Middle-East and some European countries.
However, the production cost of white onions is higher than other onions due to higher seed cost, adoption of good agricultural practice (GAP), and compliance with strict maximum residue limits (MRL) requirements.

Ban was imposed last year

It is predicted that the Kharif and Rabi production of onions in 2023-24 will be lower than last year's production.
In order to ensure sufficient domestic availability, an export ban has been imposed. Last year, reduced onion production caused an increase in domestic prices.
Unfortunately, the export ban had a negative impact on Indian farmers as they had to sell their crops at lower prices.

Target of procurement of onion

The Department of Consumer Affairs has set a procurement target of 5 lakh tons of onion buffer from Rabi-2024 under the Price Stabilisation Fund (PSF) for this year.
To support the procurement, storage, and farmer registration of any store-worthy onion, the Central Agencies, namely NCCF and NAFED, are collaborating with local agencies such as FPOs/FPCs/PACs.

Reduce the storage loss of onions,

To reduce the loss of stored onions, the Department of Consumer Affairs decided to increase the amount of onions being treated from 1200 MT last year to over 5000 MT this year.
This was done in collaboration with technical support from BARC, Mumbai. Last year's pilot programme of treating onions with irradiation and cold storage has been successful in reducing storage loss to less than 10%.