India’s onion export policy: 50,000 tonnes to Bangladesh, 14,400 tonnes to UAE approved

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NEW DELHI, March 5: The Indian government has approved the export of 50,000 tonnes of onions to Bangladesh and 14,400 tonnes to the UAE, despite ongoing restrictions on outbound shipments of the staple vegetable. For exports to the UAE, a quarterly limit of 3,600 tonnes has been set, according to an official notification from the Directorate General of Foreign Trade (DGFT). The modalities for exporting onions to Bangladesh will be coordinated by the National Cooperative Exports Limited (NCEL) in consultation with the Department of Consumer Affairs, as per the notification. India had previously banned onion exports until March 2024.

However, the DGFT notification stated that onion exports would be permitted based on the central government’s permission to other countries upon their request. In August, the government imposed a 40 per cent duty on onion exports to control price increases and enhance domestic supplies until December 31, 2023. Subsequently, the central government set a Minimum Export Price (MEP) of $800 per tonne for onion exports on a free-on-board basis, effective from October 29. While exempting the export of ‘Bangalore rose onion’ from export duty, the central government stipulated that goods intended for export must be accompanied by a certificate from the Horticulture Commissioner, Government of Karnataka, certifying the item and quantity of Bangalore Rose Onion to be exported. Bangalore rose onion, a variety grown in and around Bengaluru, Karnataka, received the Geographical Indication tag in 2015.

To combat rising onion prices, the central government has been releasing onions from its buffer stock. It had decided to maintain a 300,000-tonne onion buffer stock in the 2023-24 season, compared to 251,000 tonnes in the previous season. Buffer stock is maintained to address any emergencies and stabilize prices if they rise significantly during periods of low supply. Rabi onions, harvested from April to June, constitute 65 per cent of India’s onion production and meet consumer demand until the Kharif crop is harvested in October-November.

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