Indian Government Allows 64,400 Tonnes of Onion Exports to UAE and Bangladesh via NCEL

The government has authorized the export of 64,400 tonnes of onions to the UAE and Bangladesh via the National Cooperative Exports Ltd (NCEL), as per notifications from the commerce ministry. Bangladesh has been granted permission for the export of 50,000 tonnes of onions, while the UAE has been allowed shipments of 14,400 tonnes.

The Directorate General of Foreign Trade (DGFT) has issued a notification stating that the export of 14,400 tonnes of onions to the UAE through NCEL has been permitted, with a quarterly quantity limit of 3,600 metric tonnes. Regarding exports to Bangladesh, the modalities will be determined by NCEL in collaboration with the Department of Consumer Affairs. Despite the ban on onion exports, the government permits specific quantities to friendly nations.

The exports are allowed on the basis of permission granted by the government to other countries based on their request. On December 8 last year, the government banned exports of onion till March 31 this year with a view to increase domestic availability and to keep prices in check. Earlier, the Centre in October 2023 had decided to step up the sale of buffer onion stock at a subsidised rate of Rs 25 per kg in retail markets in order to provide relief to consumers.

In efforts to manage prices, the government has implemented various measures. On October 28, an imposition of a minimum export price (MEP) of USD 800 per tonne on onion exports was put in place, effective until December 31, 2023. Additionally, in August, India levied a 40 percent export duty on onions, also until December 31, 2023.

From April 1, 2023, to August 4, 2023, a total of 9.75 lakh tonnes of onions were exported from India during this fiscal period. Notably, the top three importing countries in terms of value are Bangladesh, Malaysia, and the UAE.