India permits the export of 64,400 tonnes of onions to the UAE and Bangladesh

NEW DELHI: The Indian government, through the National Cooperative Exports Ltd (NCEL), has granted approval for the export of 64,400 tonnes of onions to the UAE and Bangladesh, according to a statement from the commerce ministry. Specific allocations have been outlined for each country, with the Directorate General of Foreign Trade (DGFT) announcing the export of 14,400 tonnes to the UAE, subject to a quarterly quantity ceiling of 3,600 metric tonnes.

Despite the government’s imposition of an onion export ban until March 31, initiated on December 7, 2023, to meet domestic demand and stabilize wholesale prices, exceptions have been made for certain friendly nations. These permitted exports are based on specific requests and permissions granted by the government.

In a bid to enhance domestic availability and control prices, the government had previously imposed measures such as a ban on onion exports until March 31, 2023. Additionally, buffer onion stock is being sold at a subsidized rate of Rs 25 per kg in retail markets to provide relief to consumers. A minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 to December 31, 2023, and a 40% export duty on onions until the same date were also implemented to regulate prices.

Notably, between April 1 and August 4 of the current fiscal year, India exported a total of 9.75 lakh tonnes of onions, with Bangladesh, Malaysia, and the UAE ranking as the top three importing countries in terms of value. Onions, being a politically-sensitive commodity, are subject to careful regulation.

The National Cooperative Exports Ltd (NCEL), a multi-state cooperative society, is jointly promoted by well-known cooperative entities such as the Gujarat Cooperative Milk Marketing Federation (GCMMF), Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO), and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).