india-allows-limited-onion-exports-to-uae-bangladesh-amidst-domestic-availability-concerns

The government of India has granted permission for the export of 64,400 tonnes of onions to the United Arab Emirates (UAE) and Bangladesh through the National Cooperative Exports Ltd (NCEL), as indicated by notifications from the Ministry of Commerce and Industry.

                              

Bangladesh is permitted to receive 50,000 tonnes of onion exports, while shipments of 14,400 tonnes have been allocated to the UAE.

 

In a notification, the directorate general of foreign trade (DGFT), a branch of the commerce ministry responsible for import and export regulations, stated, "Export of 14,400 tonnes of onions, with a quantity ceiling of 3,600 MT (metric tonnes) quarterly, to UAE through NCEL is notified."

 

Regarding exports to Bangladesh, the DGFT mentioned that the modalities would be determined by the NCEL in consultation with the department of consumer affairs.

 

Although onion exports are currently banned, the government is allowing specified quantities to be exported to friendly nations upon request.

 

The export permissions are granted based on requests from other countries and are subject to government approval.

 

On December 8 last year, the government imposed a ban on onion exports until March 31 this year to bolster domestic availability and stabilize prices.

 

Previously, in October 2023, the government decided to increase the sale of buffer onion stock at a subsidized rate of Rs 25 per kg in retail markets to alleviate consumer concerns.

 

To regulate prices, the government has implemented various measures. This includes imposing a minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 to December 31, 2023.

 

Additionally, in August, India imposed a 40 per cent export duty on onions until December 31, 2023.

 

Between April 1, 2023, and August 4, 2023, a total of 9.75 lakh tonnes of onions were exported from the country. Bangladesh, Malaysia, and the UAE were the top three importing countries in terms of value.

 

Onion is a commodity of political significance.

 

The NCEL is a multi-state cooperative society jointly promoted by leading cooperative societies in the country, namely, the Gujarat Cooperative Milk Marketing Federation (GCMMF), commonly known as AMUL; Indian Farmers Fertilizer Cooperative Ltd (IFFCO); Krishak Bharati Cooperative Ltd (KRIBHCO); and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).