New Delhi: The government has allowed the export of 99,150 MT of onion to six countries namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka, according to a statement by the Press Information Bureau (PIB).
The government had imposed an export prohibition in order to ensure adequate domestic availability of onions in the country. This prohibition was imposed due to the expected lower Kharif and Rabi crops this year.
The National Cooperative Exports Limited (NCEL) is the agency responsible for exporting onions to these countries. The NCEL sourced the onions from local sources and supplied them to the buyers through e-platform at L1 prices. The offer rate of the NCEL to the buyers is based on the prevailing prices in the international and domestic markets.
The government has allowed the export of 2,000 tonnes of white onion. White onions are only produced in Maharashtra and due to their high seed cost, adoption of good agricultural practices, and compliance with stringent maximum residue limits (MRL) requirements, their production cost is higher than that of other onions.
The procurement target for onion buffer under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been set at 5 lakh tonnes this year. The Central Agencies, including NCCF and NAFED, are working in collaboration with local agencies to assist in the procurement, storage, and registration of farmers to begin the procurement of 5 lakh tonnes of onion for the PSF buffer.