Indian Government allows Additional 10,000 Tonnes of Onion Exports to UAE

Indian Government Extends Onion Export to UAE as Eid Approaches

On April 3rd, the Indian government extended a friendly gesture towards the United Arab Emirates (UAE) by authorizing the export of an additional 10,000 tonnes of onions via the National Cooperative Exports Ltd (NCEL). This decision, coinciding with the impending Eid festival, serves as a testament to the goodwill shared between the two nations. The directive, issued by the Directorate General of Foreign Trade (DGFT) late on Tuesday, supplements a prior allowance of 14,400 tonnes of onion export sanctioned on March 1st. It’s noteworthy that NCEL had previously imposed a quarterly limit of 3,600 metric tonnes for such exports.

With this latest move, the total approved onion export now stands at 79,150 tonnes, effectively fulfilling commitments made to friendly nations amidst the ban on shipments imposed on December 8, 2023. The rationale behind regulating onion exports is rooted in the global supply scenario and the El Nino-induced dry spell experienced during the fiscal year 2023-24. Various policy measures were implemented to address this, including a 40 per cent export duty imposed on August 19, 2023, and the enforcement of a Minimum Export Price (MEP) of USD 800 per metric ton starting from October 29, 2023. Ultimately, export prohibition came into effect on December 8, 2023, aimed at stabilizing domestic prices.

As onion prices surged, the Central government intervened by releasing onions from its buffer stock. On March 26th, it directed the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to procure 5 lakh tonnes of onions directly from farmers during the ongoing Rabi-2024 harvest, ensuring that buffer requirements are adequately met. The significance of the Rabi onion crop cannot be overstated, as it contributes 72 -75 per cent of the country’s annual onion production. Furthermore, Rabi onions possess a superior shelf life compared to Kharif onions, allowing for storage until November-December, thus ensuring year-round availability.

Throughout the fiscal year 2023-24, the Department of Consumer Affairs, through NAFED and NCCF, made concerted efforts to procure approximately 6.4 lakh metric tonnes of onions for buffer stocking and intervention through simultaneous procurement and disposal. This comprehensive approach underscores the government’s steadfast commitment to stabilizing onion prices and ensuring domestic availability while simultaneously fulfilling international obligations in a spirit of cooperation and goodwill.