The government, in a gesture of goodwill as the Eid festival approaches, has sanctioned the export of an additional 10,000 tonnes of onions to the UAE through the National Cooperative Exports Ltd (NCEL). This decision, announced by the Directorate General of Foreign Trade (DGFT) late on Tuesday, supplements the earlier allowance of 14,400 tonnes for export to the UAE on March 1 via NCEL, which had set a quarterly limit of 3,600 metric tonnes.
With this approval, a total of 79,150 tonnes of onions have been authorized for export, fulfilling commitments to friendly nations since the imposition of the export ban on December 8, 2023, to stabilize domestic prices amid supply constraints induced by the El Nino weather phenomenon.
In response to global supply challenges and El Nino-induced dry conditions, the government implemented various policies to regulate onion exports during the fiscal year 2023-24. These measures included a 40% duty on onion exports from August 19, 2023, the imposition of a Minimum Export Price (MEP) of USD 800 per MT starting October 29, 2023, and an export ban effective December 8, 2023, to ensure affordable onion availability for domestic consumers. Additionally, to address escalating onion prices, the Central government has been releasing onions from its buffer stock.
On March 26, it directed the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to procure 5 lakh tonnes of onions directly from farmers during the ongoing Rabi-2024 harvest to meet the country’s buffer requirement.
The Rabi onion crop plays a critical role in ensuring onion availability, contributing 72-75% of the annual production, and provides year-round supplies due to its better shelf life compared to Kharif onions, which can be stored for distribution until November-December.
During 2023-24, the Department of Consumer Affairs, through NAFED and NCCF, procured approximately 6.4 lakh metric tonnes of onions for buffer stocking and intervention to stabilize prices, ensuring fair returns for onion farmers while safeguarding consumer interests.
