Centre lifts 4-month onion export ban, allows shipments to neighbouring countries
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New Delhi: After a ban imposed in December 2023, the Indian government has decided to resume onion exports, permitting shipments to six neighbouring countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
This decision comes despite the ongoing ban on onion exports, indicating a shift in policy.
In addition to the exports to neighbouring countries, the Centre has also sanctioned the export of 2,000 tonnes of white onions, specifically cultivated for markets in the Middle East and certain European countries.
The ban on onion exports was initially enforced on December 8, 2023, to ensure sufficient domestic availability amid lower crop estimates for 2023-24 compared to previous years. The surge in international demand necessitated the ban to stabilize domestic prices.
The National Cooperative Exports Limited (NCEL), responsible for onion exports, has sourced onions from Maharashtra, the largest producer in India. The exported onions are sold through an e-platform at competitive prices.
Furthermore, the government has set a procurement target of 5 lakh tonnes of onions for buffer stock under the Price Stabilisation Fund (PSF) for the Rabi crop 2024. Central agencies like NCCF and NAFED are collaborating with local agencies to support procurement, storage, and farmer registration.
To minimize storage losses, the government plans to increase the quantum of onions to be irradiated and cold-stored from 1,200 tonnes to over 5,000 tonnes with technical assistance from BARC, Mumbai. The pilot project initiated last year demonstrated a significant reduction in storage losses.
Recent data released by the Union Agriculture Ministry indicates a decrease in onion production for 2023-24 compared to the previous year. Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan are among the states witnessing a decline in onion output, contributing to the overall decrease in production.