The government of India allows the export of 2000 metric tonnes of white onion cultivated especially for export markets in Middle-East and some European countries
The Government has allowed the export of 99,150 metric tonnes of onion to six neighbouring countries Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to the previous year and increased demand in the international market.
The National Cooperative Exports Limited (NCEL), the agency for the export of onion to these countries, sourced the domestic onions to be exported through the e-platform at L1 prices and supplied to the agency or agencies nominated by the government of the destination country at the negotiated rate on 100 per cent advance payment basis. The offer rate of NCEL to the buyers takes into account the prevailing prices in the destination market and also international and domestic markets. The quota allocated for export to the six countries is being supplied as per requisition made by the destination country. As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export.
The Government had also allowed the export of 2000 MT of white onion cultivated specially for export markets in the Middle East and some European countries. Being purely export-oriented, the production cost of the white onion 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.
The procurement target for onion buffer out of Rabi-2024 under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 Lakh tons this year.