Business News / India will send onions to these 6 countries despite the ban, hence this decision was taken

Business News: The central government on Saturday said that despite the ban on export, it has given permission to send 99,150 tonnes of onion to six countries. The Center has also allowed the export of 2,000 tonnes of specially grown white onions for the export markets of West Asia and some European countries. The government had banned the export of onions on December 8, 2023.

Government gave information

The Ministry of Consumer Affairs, Food and Public Distribution said in an official statement that the government has 'allowed export of 99,150 tonnes of onion to six countries - Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. The export restriction has been imposed to ensure adequate domestic availability due to the forecast of lower Kharif and Rabi production in 2023-24 compared to last year. National Cooperative Export Limited (NCEL), the agency that exports onions to these countries, has procured domestic onions for export through the e-platform.

Why did the government take this decision?

Bahrain, Mauritius and Sri Lanka. According to a press release, the decision comes in response to increasing demand in the international market as well as lower projected Kharif and Rabi crop seasons in 2023-24 compared to the previous year. To facilitate exports, National Cooperative Exports Limited (NCEL) has been designated as the agency responsible for exporting onions to these countries.

NCEL will supply onions from domestic producers through e-platform at competitive prices. Onions will be supplied to the designated agency or agencies of those countries at fixed rates with 100 percent advance payment.

Let us tell you that Maharashtra, being the largest onion producer in the country, will be a major supplier of onions for export. Additionally, the government has allowed export of 2000 metric tonnes of white onion, which is cultivated specifically for the export markets of the Middle East and some European countries.

What is the real reason?

The production cost of white onion is high due to factors such as high seed cost, adoption of good agricultural practices and compliance with strict maximum residue limit requirements. To ensure domestic stability, the government has set a target to procure 5 lakh tonnes of onion under the Price Stabilization Fund (PSF) for the Rabi-2024 season.

Central agencies like National Cooperative Consumer Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) are collaborating with local agencies to support procurement, storage and farmer registration.