India Allows Export of Onions to Six Nations Amid Supply Concerns

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GG News Bureau
New Delhi, 27th April.
 The Indian government has greenlit the export of 99,150 metric tons (MT) of onion to six neighboring countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes against the backdrop of lower estimated Kharif and Rabi crops in 2023-24 compared to the previous year, coupled with increased demand in the international market.

The National Cooperative Exports Limited (NCEL) has been designated as the agency responsible for exporting onions to these nations.

Utilizing an e-platform, NCEL procures domestic onions at L1 prices and supplies them to the nominated agencies of the destination countries on a 100% advance payment basis. Maharashtra, as the largest onion producer in India, serves as the primary source of onions for export through NCEL.

Additionally, the government has authorized the export of 2000 MT of white onion specifically cultivated for export markets in the Middle East and certain European countries. White onion production entails higher costs due to factors such as elevated seed expenses, adherence to good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements.

To bolster onion procurement and mitigate storage losses, the government has set a procurement target of 5 lakh tons of onion buffer from the Rabi-2024 crop under the Price Stabilization Fund (PSF).

Central agencies such as the National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) are collaborating with local agencies like Farmers’ Producer Organizations (FPOs), Farmers’ Producer Companies (FPCs), and Primary Agricultural Credit Societies (PACs) to facilitate procurement and storage arrangements.

Moreover, to curb storage losses, the Department of Consumer Affairs plans to increase the quantum of onions to be irradiated and cold stored from 1200 MT last year to over 5000 MT this year.

This initiative, supported by the Bhabha Atomic Research Centre (BARC) in Mumbai, aims to reduce storage losses to less than 10 percent, building upon the success of last year’s pilot project on onion irradiation and cold storage.

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