The Indian Government announced on Saturday that it has permitted the export of 99,500 tonnes of onions, primarily sourced from Maharashtra, to six neighbouring countries, despite the existing ban on onion shipments. Additionally, the government has authorized the export of 2,000 tonnes of white onions specifically cultivated for export markets in the Middle East and certain European countries. The ban on onion exports was initially imposed on 8 December 2023.
In an official statement, India’s Ministry of Consumer Affairs, Food & Public Distribution explained that the decision to allow onion exports to six neighbouring nations, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka, was made to ensure adequate domestic availability amidst lower estimated Kharif and Rabi crops for the year 2023-24 compared to the previous year. The ban on exports was put in place due to increased demand in the international market.
The National Cooperative Exports Limited (NCEL), responsible for onion exports to these countries, procured domestic onions for export through an e-platform at L1 prices. These onions were supplied to government-nominated agencies in the destination countries at negotiated rates, with payment made in full in advance. NCEL’s pricing strategy considers prevailing prices in the destination and domestic markets, as well as international market trends. The allocated export quota to the six countries is being fulfilled as per the requisitions received from the respective destination countries.