New Delhi:

The government on Saturday lifted the ban on onion exports subject to a minimum export price of USD 550 per tonne, a decision that can help boost income of a large section of farmers and comes ahead of the Lok Sabha polls in key producing regions including Maharashtra.

The government has imposed a minimum export price (MEP) of USD 550 per tonne (around Rs 46 per kg) as well as 40 per cent export duty. Taking duty into account, the shipments will not be allowed below USD 770 per tonne (around Rs 64 per kg).

On December 8 last year, the Centre had banned onion exports in early December to control retail prices amid concerns over likely fall in production. During the last 4-5 years, the country annually exported between 17 lakh and 25 lakh tonnes of onions.

Consumer Affairs Secretary Nidhi Khare said the lifting of the ban would not lead to any price rise in retail markets.

“Prices will remain stable. If at all there is any increase, it should be very marginal,” she said, while asserting that the government is committed to protect the interests of both consumers and farmers.

Earlier in the day, the directorate general of foreign trade (DGFT) said in a notification that “the export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric tonne with immediate effect and until further orders.” Last night, the finance ministry imposed a 40 per cent export duty.

The decision assumes importance as it comes before the crucial Lok Sabha polls in key onion belts like Nashik, Ahmednagar and Solapur in Maharashtra. Farmers of this region have been demanding a lifting of the ban so that they can get a better price for their produce.

Explaining the rationale behind the decision, Khare said the “ban on onion exports has been removed from today (Saturday) because the supply situation is comfortable and prices are stable in both mandies as well as retail markets.” The modal price at Lasalgaon mandi in Nashik was Rs 15 per kg in April.

She said the decision has been taken after considering the latest estimates of onion production in rabi season at 191 lakh tonnes, which is comfortable. Availability and prices of onion in global markets were also factored in while taking this decision.

The secretary said the monthly domestic demand of onion is around 17 lakh tonnes.

“Lifting of the ban would also encourage the farmers to put more area under onions. The monsoon forecast is above normal,” Khare said.

The secretary noted that the decision has been taken after wider discussions with stakeholders. A high-level team also visited key onion producing belts in Maharashtra to assess the ground situation.

Khare also pointed out that the shelf life of onions is less and therefore a need was felt to export onions.

The secretary said that the government is procuring 5 lakh tonnes of onions as buffer stock, so that it can intervene in the market in case of price rise.

“We are continuously monitoring the prices of all essential food items. We will continue to keep a watch on the availability and price situation,” she said.

A senior government official explained that there is an inter-ministerial committee (IMC) which reviews the prices, production, availability and exports of essential food items including onions.

“So do not think of this as an isolated instance of decision making by IMC,” the official said, when asked whether the decision has been made in view of general elections.

The official said the IMC has been taking a series of steps in various commodities including wheat and rice to boost domestic supply and keep prices under check.

In March, the Union Agriculture Ministry released the data for onion production.

As per the data, onion production in 2023-24 (First Advance Estimates) is expected to be around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year. This is due to a decrease of 34.31 lakh tonnes output in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh and 3.12 lakh tonnes in Rajasthan, the data showed.

Last month, in an official statement, the Ministry of Consumer Affairs, Food and Public Distribution said the government has allowed export of 99,150 tonnes of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.

The Congress last month accused the Narendra Modi government of “callously neglecting” Maharashtra’s onion farmers affected due to the ban on onion exports and said that its manifesto promises a predictable import-export policy to prevent such catastrophic last-minute policies being imposed on farmers.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Hard-working labourers unload onion bags at the bustling market in Puducherry on Tuesday.
| Photo Credit: KUMAR SS

The government on May 4 lifted the ban on onion exports but imposed a minimum export price (MEP) of $550 per tonne.

The decision assumes significance as the commodity is politically sensitive and general elections are going on in the country.

“The export policy of onions is amended from prohibited to free subject to MEP of $550 per metric ton with immediate effect and until further orders,” the directorate general of foreign trade (DGFT) said in a notification.

Last night, the government imposed a 40% duty on the export of onions.

In August last year, India had imposed a 40% export duty on onions up to December 31, 2023.

New Delhi:

The Centre on Saturday said it has allowed exports of 99,500 tonnes of onions, mainly sourced from Maharashtra, to six neighbouring countries despite the ban on shipments.

The Centre has also allowed exports of 2,000 tonnes of white onion cultivated, especially, for export markets in the Middle East and some European countries.

On December 8, 2023, the government banned export of onions.

In an official statement, the Ministry of Consumer Affairs, Food & Public Distribution said the government has “allowed export of 99,150 tonnes of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka”.

The export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 compared to the previous year.

The ban was imposed amid an increase in demand in the international market, it added.

The National Cooperative Exports Limited (NCEL), the agency for the export of onion to these countries, sourced the domestic onions to be exported through e-platform at L1 prices.

NCEL has supplied to the agency or agencies nominated by the government of the destination country at the negotiated rate on a 100 per cent advance payment basis.

The offer rate of NCEL to the buyers takes into account the prevailing prices in the destination market and also international and domestic markets.

The quota allocated for export to the six countries is being supplied as per requisition made by the destination country.

“As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export,” the statement said.

The government had also allowed the export of 2,000 tonnes of white onion cultivated, especially for export markets in the Middle East and some European countries.

“Being purely export-oriented, the production cost of the white onion is higher than other onions due to higher seed cost, adoption of good agricultural practice (GAP) and compliance to strict maximum residue limits (MRL) requirements,” the statement said.

The procurement target for onion buffer out of Rabi crop 2024 under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 lakh tonnes this year.

The Central agencies, like NCCF and NAFED are tying up local agencies like FPOs/FPCs/PACs to support the procurement, storage and farmers registration to begin the procurement of any store-worthy onion.

A high-level team of the Department of Consumer Affairs, NCCF and NAFED visited Nashik and Ahmednagar districts of Maharashtra from April 11-13, 2024, to create awareness among the farmers, FPOs/FPCs and PACs about the procurement of 5 lakh tonnes of onion for buffer stock.

To reduce the storage loss of onions, the department has decided to enhance the quantum of stocks to be irradiated and cold stored from 1,200 tonnes last year to over 5,000 tonnes this year, with technical support from BARC, Mumbai.

The pilot of onion irradiation and cold storage taken up last year has been found to have resulted in the reduction of storage loss to less than 10 per cent, the statement said.

In March, the Union Agriculture Ministry released the data for onion production.

As per the data, onion production in 2023-24 (First Advance Estimates) is expected to be around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year.

This is due to a decrease of 34.31 lakh tonne output in Maharashtra, 9.95 lakh tonne in Karnataka, 3.54 lakh tonne in Andhra Pradesh and 3.12 lakh tonne in Rajasthan, the data showed. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

On December 8, 2023, the government put a domestic ban on the export of onions.
| Photo Credit: ANI

The Centre on April 27 said it has allowed exports of 99,500 tonnes of onions, mainly sourced from Maharashtra, to six neighbouring countries despite the ban on shipments.

The Centre has also allowed exports of 2,000 tonnes of white onion cultivated, especially, for export markets in the Middle East and some European countries.

On December 8, 2023, the government banned export of onions.

Also Read: Parliamentary proceedings | Government defends onion export ban

In an official statement, the Ministry of Consumer Affairs, Food & Public Distribution said the government has “allowed export of 99,150 tonnes of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka”.

The export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 compared to the previous year.

The ban was imposed amid an increase in demand in the international market, it added.

The National Cooperative Exports Limited (NCEL), the agency for the export of onion to these countries, sourced the domestic onions to be exported through e-platform at L1 prices.

NCEL has supplied to the agency or agencies nominated by the government of the destination country at the negotiated rate on a 100 per cent advance payment basis.

The offer rate of NCEL to the buyers takes into account the prevailing prices in the destination market and also international and domestic markets.

The quota allocated for export to the six countries is being supplied as per requisition made by the destination country.

“As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export,” the statement said.

The government had also allowed the export of 2,000 tonnes of white onion cultivated, especially for export markets in the Middle East and some European countries.

“Being purely export-oriented, the production cost of the white onion is higher than other onions due to higher seed cost, adoption of good agricultural practice (GAP) and compliance to strict maximum residue limits (MRL) requirements,” the statement said.

The procurement target for onion buffer out of Rabi crop 2024 under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 lakh tonnes this year.

The Central agencies, like NCCF and NAFED are tying up local agencies like FPOs/FPCs/PACs to support the procurement, storage and farmers registration to begin the procurement of any store-worthy onion.

A high-level team of the Department of Consumer Affairs, NCCF and NAFED visited Nashik and Ahmednagar districts of Maharashtra from April 11-13, 2024, to create awareness among the farmers, FPOs/FPCs and PACs about the procurement of 5 lakh tonnes of onion for buffer stock.

To reduce the storage loss of onions, the department has decided to enhance the quantum of stocks to be irradiated and cold stored from 1,200 tonnes last year to over 5,000 tonnes this year, with technical support from BARC, Mumbai.

The pilot of onion irradiation and cold storage taken up last year has been found to have resulted in the reduction of storage loss to less than 10 per cent, the statement said.

In March, the Union Agriculture Ministry released the data for onion production.

As per the data, onion production in 2023-24 (First Advance Estimates) is expected to be around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year.

This is due to a decrease of 34.31 lakh tonne output in Maharashtra, 9.95 lakh tonne in Karnataka, 3.54 lakh tonne in Andhra Pradesh and 3.12 lakh tonne in Rajasthan, the data showed.

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Image used for representative purpose only
| Photo Credit: PTI

The government on February 22 permitted traders to export 54,760 tonnes of onion to Bangladesh, Mauritius, Bahrain and Bhutan till March 31.

“We have allowed export of 50,000 tonnes of onion to Bangladesh, 1,200 tonnes to Mauritius, 3,000 tonnes of Bahrain and 560 tonnes to Bhutan with immediate effect,” Consumer Affairs Secretary Rohit Kumar Singh told PTI.

Also Read: Parliamentary proceedings | Government defends onion export ban

Traders are allowed to export this quantity till March 31. The modalities are being worked out, he said.

Mr. Singh said the decision has been taken following a recommendation from the External Affairs Ministry.

Currently, there is a ban on onion exports till March 31. The ban was imposed on December 8, 2023, in order to boost the domestic supply and check price rise.

Workers at Vinchur onion market in Nashik. File
| Photo Credit: PTI

The Centre has imposed a ban on the export of onions until March 31, 2024, to curb the surging local prices of the product.

A Directorate General of Foreign Trade (DGFT) order late on Thursday said: “Export policy of onions… is amended from free to prohibited till March 31, 2024.”

Earlier, on August 19, the Union government had imposed a 40% duty on the export of onions (minimum export price of $800 per metric ton) until December 31, to increase domestic availability amid signs of increasing prices and provide relief to local consumers.

In its order, the DGFT also said that the onion exports, however, will be allowed based on permission granted by the government to other countries based on their request and that shipments, whose loading had commenced before the fresh notification, are allowed to be exported.

In response to the Centre’s announcement of a ban on the export of onions until March 31, 2024, farmers in Maharashtra’s Nashik district took to the streets, blocking the Mumbai-Agra National Highway at three locations and disrupting auctions

The farmers also halted auctions in Lasalgaon, Asia’s largest wholesale onion market, Chandwad, Nandgaon, Dindori, Yeola, Umarane, and other places in Nashik.

Stating that the ban would adversely impact farmers, protesters staged road blockades with tractors for hours. With no auction at the Lasalgaon APMC, over 600 onion-laden vehicles were redirected to Vinchur with wholesale prices ranging from ₹1,500 to ₹3,300 per quintal.

Lasalgaon APMC chairperson Balasaheb Kshirsagar condemned the government’s decision, claiming it was unfavourable to farmers.

“Onion prices had recently come down, and the ban would lead to losses. Presently, onion prices range from ₹1,000 to ₹1,200 per quintal, despite some selling at ₹3,000 per quintal,” he said, alleging middlemen for artificial price inflation.

Mr. Kshirsagar demanded direct government sales without the involvement of middlemen.

“Farmers had already suffered losses due to unseasonal rainfall and hail. It must revoke its decision on the ban to support farmers,” another farmer said.

The farmers and traders associations are likely to meet Chief Minister Eknath Shinde, his deputy Ajit Pawar, and Nationalist Congress Party (NCP) president Sharad Pawar to express their concerns.

New Delhi:

The government on Saturday imposed a minimum export price (MEP) of USD 800 per tonne on onion exports till December 31 this year with a view to increase availability of the vegetable in the domestic market and contain prices.

The decision will come into effect from October 29.

Besides, the government has also announced the procurement of additional 2 lakh tonnes of onion for the buffer, over and above the 5 lakh tonnes already procured.

The MEP is there for all varieties of onion except Bangalore Rose and Krishnapuram onions; and for cut, sliced, or broken in powder forms.

“Exports of onions is free. MEP of USD 800 FOB (free on board) per tonne is imposed till December 31, 2023,” the Directorate General of Foreign Trade said in a notification.

An official statement said that the step will help in maintaining sufficient availability of onion to domestic consumers at affordable prices as the quantity of stored Rabi 2023 onion is declining.

The USD 800 per tonne MEP translates into about Rs 67 per kg.

Onion from the buffer has been disposed continuously since the second week of August in major consumption centres all over the country, and also supplied to retail consumers at Rs 25 per kg through mobile vans operated by NCCF and NAFED.

“Till date about 1.70 lakh metric tonne of onion has been disposed from the buffer. The continuous procurement and disposal of onion from the buffer are undertaken to moderate the prices for consumers while ensuring remunerative prices to the onion farmers,” the statement said.

The DGFT notification added that certain onion consignments will be allowed to be exported without MEP and that included consignments that have been handed over to the Customs before this notification and is registered in their system.

Onion consignment that has entered the Customs station for exportation before this notification and is registered in the electronic systems of the concerned custodian of the Customs station with verifiable evidence of date and time stamping of these commodities having entered the customs station prior to the issuance of this notification is also permitted to be exported.

It added that export duty will not be refunded, if paid.

Onion prices have further risen to Rs 65-80 per kg in the retail market of the national capital on lower supply.

Mother Dairy, which has around 400 Safal retail stores in Delhi-NCR, is selling loose onions at Rs 67 per kg. E-commerce portal Bigbasket is selling at Rs 67 per kg, while Otipy at Rs 70 per kg.

Local vendors are selling onions at Rs 80 per kg.

Mother Dairy was selling onions at Rs 54-56 per kg on Wednesday and now the rates have touched Rs 67 per kg.

With the rise in retail prices, the Centre on Friday decided to step up the sale of buffer onion at a subsidised rate of Rs 25 per kg in retail markets in order to provide relief to consumers.

According to the Department of Consumer Affairs data, on Saturday the all-India average retail price of onion is Rs 45 per kg, but the maximum price is Rs 80 per kg. In Delhi, the average price is ruling at Rs 75 per kg.

According to the ministry, onion is being offloaded from the buffer stock in both wholesale and retail markets in those states where there is a sharp rise in prices.

Since mid-August, about 1.7 lakh tonnes of buffer onion has been offloaded in 22 states at different locations.

In retail markets, buffer onion is being offloaded through two cooperative bodies NCCF and NAFED outlets and vehicles at a subsidised rate of Rs 25 per kg.

In Delhi too, buffer onion is being sold at this subsidised rate.

A senior government official said the delay in kharif onion sowing due to weather reasons has resulted in less coverage and late arrival of the crop.

The fresh kharif onion should have started arriving by now but it has not.

With stored rabi onion getting exhausted and due to delay in the arrival of the kharif onion, there is a tight supply situation, resulting in price increases in both wholesale and retail markets, the official added.

He also mentioned that the government has doubled the buffer onion stock for the current year and this should improve domestic availability and check prices in the coming days.

For the 2023-24 fiscal year, the consumer affairs ministry through NCCF and NAFED has maintained a buffer onion stock of 5 lakh tonnes and plans to procure an additional 2 lakh tonnes of onion in the coming days.

Maharashtra Minister Dada Bhuse. File
| Photo Credit: Vivek Bendre

Amid protests by farmers and traders against the Centre’s decision to impose 40% export duty on onions, Maharashtra Minister Dada Bhuse has claimed it would make no difference if people did not consume the staple vegetable for two to four months.

The State PWD minister, however, also said on Monday that the decision to impose export duty should have been taken with proper coordination.

The Union government on August 19 imposed 40% duty on the export of onions to check price rise and improve supplies in the domestic market.

The Finance Ministry through a notification imposed the 40% export duty on onions till December 31, 2023.

“When you use a vehicle worth ₹10 lakh, you can buy produce at a higher rate by ₹10 or ₹20 than the retail rate. Those who cannot afford to buy onion, it would make no difference if they do not eat it for two-four months,” Mr. Bhuse said.

He also said the decision to impose export duty should have been taken with proper coordination.

“Sometimes onion fetches rates of ₹200 per quintal while sometimes it attracts ₹2,000 per quintal. A discussion can be held and an amicable solution can be found,” Bhuse said.

Earlier on Monday, traders decided to close onion auctions indefinitely in all the Agriculture Produce Market Committees (APMCs) in Nashik, including at Lasalgaon, which is the largest wholesale onion market in India.

The Nashik District Onion Traders Association had given the call to not take part in onion auctions indefinitely till the Centre rolls back its decision, sources said.

Several farmers and traders held protests across the district seeking a rollback of the export duty.

A labourer shortlist onion at APMC wholesale Market in Ahmedabad. File
| Photo Credit: Vijay Soneji

The Centre, on Saturday, imposed a 40% duty on the export of onions. The Centre will also offload stocks of onions in various wholesale markets to reduce the retail prices. The national average prices of the essential vegetable had increased by at least ₹5 compared to last year.

On Saturday, the national average price was ₹30.72 per kilogram, with a maximum price of ₹63 per kilogram in Champhai in Manipur and a minimum of ₹10 per kilogram at Neemuch and Burhanpur in Madhya Pradesh. “This notification shall come into force with immediate effect, and will remain in force up to and inclusive of the December 31, 2023,” a gazette notification of the Union Finance Ministry’s Revenue Department said. NCP leader and MP Supriya Sule questioned the move and urged the Centre to ensure remunerative prices for onion farmers.

Consumer Affairs Secretary Rohit Kumar Singh said the decision was taken in order to increase the availability of onions in the domestic market especially in view of the upcoming festival season. “It was also being noticed that there was a sharp rise in exports in the recent past,” he told The Hindu. He added that the Centre auctioned two truckloads, each with 30 metric tonnes of onion, in Azadpur market here and the NAFED auctioned three truckloads. He said the Centre, at a rate of ₹23 per kilogram and ₹22.5 per kilogram, plans to offload at least five truckloads per day in the coming week.

Mr. Singh said the market has started cooling by the announcement for offloading by the Centre. “We expect the rates to go down further on Monday. Because of our intervention, private traders who were holding on to their stocks have also started offloading fearing crash in prices,” he said.

Responding to a statement made by Ms. Sule in February that the Centre was trying to ban or regulate onion export harming the farmers, the Union Commerce Ministry said there was no such move. “Government has not restricted or prohibited the export of onion. The extant export policy of onions is ‘free’. Only the export of onion seed is ‘Restricted’ and that too is permitted under Authorisation from Directorate General of Foreign Trade (DGFT),” the Centre had said. Commerce Minister Piyush Goyal had also questioned Ms. Sule’s stand.

Ms. Sule said she was always speaking the truth. “I was talking what I was hearing from the ground. Farmers were telling me that there was a plan to ban or regulate the export. I requested the Commerce Ministry to drop this plan. I was told that there was no such plan. But now, they are regulating the export of onions. There has to be a balance between the interests of farmers and consumers. Farmers should get remunerative price. Consumers should get onions at a reasonable price. It is the duty of the government to ensure a win win situation,” she added.

According to the Commerce Ministry, in the ongoing financial year, about 9.75 lakh tonnes of onions have been exported. Bangladesh, Malaysia and the United Arab Emirates are the major importers of onions from India.