April 2024: In a significant move aimed at providing relief to onion producers, the central government has greenlit the export of onions, permitting a total of 99,150 metric tonnes to be shipped to six countries. This decision comes amidst a backdrop of fluctuating onion prices and market demand dynamics.
The export permission extends to Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka, offering a substantial respite to onion farmers across the nation. The move follows a ban on red onion exports from Maharashtra while simultaneously opening up the export channels for white onions from Gujarat.
However, this decision has not gone without controversy. Opposition parties have criticized the government’s handling of the onion export policy, particularly in the wake of fluctuating domestic prices and demand-supply imbalances.
To facilitate the export process, the National Cooperative Exports Limited (NCEL) has been tasked with overseeing onion exports. NCEL will operate as the intermediary, ensuring fair pricing and smooth transactions between domestic producers and overseas buyers.
Under the new export framework, onion procurement will occur via the NCEL e-platform at competitive rates from domestic producers. Subsequently, the onions will be supplied to designated agencies in the destination countries against negotiated rates, with a requirement of 100 percent advance payment.
This strategic move not only addresses the increased demand for onions in the national market but also provides a lucrative opportunity for Indian farmers to tap into international markets. Moreover, the government had previously permitted the export of 2000 metric tonnes of white onions, further indicating its commitment to supporting agricultural exports.
The decision to allow onion exports underscores the government’s proactive approach towards stabilizing agricultural markets while simultaneously promoting trade opportunities for farmers. As the nation grapples with economic challenges, such measures aim to bolster agricultural growth and support farmers’ livelihoods in the long run.
