The Directorate General of Foreign Trade (DGFT) has allowed the export of 10,000 tonnes of onions to Sri Lanka at a time when the staple vegetable’s outward shipments have been kept under restrictions.
According to the DGFT notification, as of now, India has approved 79,160 tonnes of onions for export via the National Cooperatives Exports Cooperative, overriding a ban on shipments imposed in December last year.
GDFT has permitted the export of an additional 10,000 metric tons (MT) of onions to the UAE (above 24,000 tons already allowed) and 10,000 tons to Sri Lanka, facilitated through the National Cooperative Exports Limited (NCEL).
In March, the Centre allowed the export of 50,000 tons of onions to Bangladesh.
Notably, in the Financial Year 2023-24, the government restricted onion exports due to tight global supplies and a dry spell induced by the El Nino weather phenomenon.
The DGFT notification said the export of onions will be, however, allowed based on permission granted by the central government to other countries based on the request made by the countries.
India had in early December 2023 prohibited the export of onions till March 2024.
In August, the government imposed a 40% duty on the export of onions to check price rise and improve supplies in the domestic market until December 31, 2023.
Subsequently, the central government set a Minimum Export Price (MEP) of USD 800 per tonne on a free-on-board basis for the export of onions with effect from October 29.
It is to be highlighted that amid the rising onion prices, the government has been releasing the staple vegetable from its buffer stock.
The central government had earlier decided it would maintain 3 lakh tonnes of onions in the 2023-24 season as buffer stock. In 2022-23, the government maintained 2.51 lakh tonnes of onion as buffer stock.
Earlier, the Union government allowed the export of 50,000 tonnes of onion to Bangladesh and 550 tonnes to Bhutan, apart from 3,000 tonnes to Bahrain, 1,200 tonnes to Mauritius and 14,400 tonnes to the UAE.
According to official projections, India is expected to harvest 19.3 million tonnes of rabi or winter-grown onions during 2023-24, which is about 18% lower than the production of 23.6 million tonnes in the previous season.