India Permits 64,400 Tonnes Of Onion Exports To UAE, Bangladesh

On December 8 last year, the government banned exports of onion until March 31 this year to increase domestic availability and keep prices in check.

Image Credit: ANI

New Delhi: The government has permitted exports of 64,400 tonnes of onion to the UAE and Bangladesh through the National Cooperative Exports Ltd (NCEL), according to notifications from the commerce ministry. While the export of 50,000 tonnes of onion is permitted to Bangladesh, shipments of 14,400 tonnes were allowed to the UAE.

Notification from DGFT

"Export of 14,400 tonnes of onions, with a quantity ceiling of 3,600 MT (metric tonnes) quarterly, to the UAE through NCEL is notified," the directorate general of foreign trade (DGFT) said in a notification.

Role of DGFT

DGFT is an arm of the commerce ministry, which deals with norms related to imports and exports. For exports to Bangladesh, it said that the modalities for the exports will be worked out by the NCEL in consultation with the Department of consumer affairs.

Export Policies and Bans

Though onion exports are banned, the government allows specified quantities to friendly nations. The exports are allowed based on permission granted by the government to other countries upon their request.

Export Ban and Subsidized Sale

On December 8 last year, the government banned exports of onion until March 31 this year with a view to increasing domestic availability and keeping prices in check. Earlier, in October 2023, the Centre had decided to step up the sale of buffer onion stock at a subsidized rate of Rs 25 per kg in retail markets to provide relief to consumers.

Price Control Measures

To control prices, the government has taken several steps. It imposed a minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 to December 31, 2023. In August, India imposed a 40 per cent export duty on onions up to December 31, 2023.

Export Figures and Importing Countries

Between April 1, 2023, and August 4, 2023, this fiscal year, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in value terms are Bangladesh, Malaysia, and the UAE. Onion is a politically sensitive commodity.

About NCEL

NCEL is a multi-state cooperative society. It is jointly promoted by some of the leading cooperative societies in the country, namely, Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as AMUL; Indian Farmers Fertilizer Cooperative Ltd (IFFCO); Krishak Bharati Cooperative Ltd (KRIBHCO); and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).