India permits export of onion to six countries
- In Reports
- 08:45 PM, Apr 27, 2024
- Myind Staff
Despite the ban on onion exports, the Centre announced on 27th April, that it has permitted the export of 99,500 tonnes of onions, primarily sourced from Maharashtra to six countries. Additionally, exports of 2,000 tonnes of white onions, specifically cultivated for export markets in the Middle East and certain European countries, have also been authorised by the Centre.
On December 8, 2023, the government implemented a ban on onion exports. However, in an official statement, the Ministry of Consumer Affairs, Food & Public Distribution announced that the government has now permitted the export of 99,150 tonnes of onions to six countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
The export prohibition has been enforced to ensure sufficient domestic availability, particularly in light of lower estimated Kharif and Rabi crops in 2023-24 compared to the previous year. This decision was made amidst an uptick in demand in the international market.
To facilitate the export process, the National Cooperative Exports Limited (NCEL), designated as the agency for onion exports to the specified countries, procured domestic onions for export through an e-platform at the lowest offered prices (L1 prices). NCEL then supplied these onions to the agency or agencies designated by the destination country's government, at negotiated rates, with payment required in full in advance.
The pricing offered by NCEL to buyers considers prevailing prices in the destination market as well as international and domestic market conditions, ensuring competitiveness and transparency in the export transactions. The quota allocated for export to the six countries is being fulfilled according to the requisitions made by each destination country. Given that Maharashtra is the largest onion producer in the country, it serves as the primary source of onions procured by NCEL for export.
Additionally, the government has authorised the export of 2,000 tonnes of white onions specifically cultivated for markets in the Middle East and certain European countries. The statement further explained that white onions, being solely intended for export, incur higher production costs compared to other onion varieties. This is primarily due to factors such as elevated seed costs, adherence to good agricultural practices (GAP), and compliance with strict maximum residue limit (MRL) requirements.
The Department of Consumer Affairs has set a procurement target of 500,000 tonnes of onions from the Rabi crop of 2024 under the Price Stabilisation Fund (PSF) this year. Central agencies such as the NCCF and NAFED are collaborating with local agencies like FPOs/FPCs/PACs to assist in procurement, storage, and farmer registration to initiate the procurement of storable onions.
A high-level team comprising representatives from the Department of Consumer Affairs, NCCF, and NAFED visited Nashik and Ahmednagar districts of Maharashtra from April 11-13, 2024, to raise awareness among farmers, FPOs/FPCs, and PACs regarding the procurement of 500,000 tonnes of onions for the buffer stock.
To minimise onion storage losses, the department has decided to increase the quantity of stocks to be irradiated and cold-stored from 1,200 tonnes last year to over 5,000 tonnes this year, with technical assistance from BARC, Mumbai. The pilot project on onion irradiation and cold storage initiated last year has proven successful in reducing storage losses to less than 10 percent, as per the statement.
In March, the Union Agriculture Ministry released onion production data. According to the data, onion production for 2023-24 (First Advance Estimates) is projected to be approximately 254.73 lakh tonnes, compared to approximately 302.08 lakh tonnes the previous year. According to the data, this decrease is attributed to a reduction of 34.31 lakh tonnes in output in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh, and 3.12 lakh tonnes in Rajasthan.
Image Source: Lokmat Times
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