Amidst ongoing restrictions on onion exports, Bharat has announced a limited allowance for the export of the staple vegetable to the United Arab Emirates-UAE and Sri Lanka. The Commerce and Industry Ministry has authorised the export of an additional 10,000 metric tons of onions to the UAE, supplementing the existing 24,000-ton quota. Additionally, 10,000 tons of onions are allocated to Sri Lanka, facilitated by the National Cooperative Exports Limited-NCEL.
This decision follows Bharat’s previous move in March to permit the export of 50,000 tons of onions to Bangladesh. However, the government has maintained a ban on further onion exports until further notice.
Initially, Bharat had prohibited the export of onions in early December 2023 till March 2024. The government notification said the export of onions will be, however, allowed based on permission granted by the Central Government to other nations based on the request made by the countries.
In August, the government imposed a 40 per cent duty on the export of onions to check price rise and enhance supplies in the domestic market until December 31, 2023. The Centre subsequently 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.
The Central Government had, though, exempted the export of ‘Bangalore Rose Onion’ from the export duty, with a small rider – goods meant for export shall be allowed to be exported subject to the exporter furnishing a certificate from the Horticulture Commissioner, Karnataka Government, certifying the item and quantity of Bangalore Rose Onion to be exported.
Bangalore rose onion is a variety of onion grown in and around Bengaluru, Karnataka. It got the coveted Geographical Indication tag in 2015.
Faced with rising onion prices, the Centre has been releasing the staple vegetable from its buffer stock. It had earlier decided to maintain 3 lakh tonne of onions in the 2023-24 season as buffer stock. In 2022-23, the government maintained 2.51 lakh tonne onion as buffer stock.
Buffer stock is maintained to meet any exigencies and for price stabilisation if rates go up significantly during the lean supply season.
Rabi onion harvested during April-June accounts for 65 per cent of Bharat’s onion production and meets the consumer’s demand till the Kharif crop is harvested in October-November.
