India has approved the export of 99 thousand 150 tons of onions to 6 countries including Bangladesh. Other countries are - United Arab Emirates, Bhutan, Bahrain, Mauritius and Sri Lanka.
This information was given on the website of the Government of India on Saturday (April 27).
It said onion exports were banned to ensure domestic supply due to lower kharif and rabi seasons in the country in 2023-24 compared to the previous year. This increases the demand in the international market. Indian agency National Cooperation Exports Limited (NCEL) exports onions to these countries. They procure onions from internal sources through e-platform at lowest price (L1). Then, on a 100% advance payment basis, the rates are negotiated and supplied to the agencies or government-designated agencies in the destination countries.
NCEL fixes the prices with the buyers taking into consideration the prices of the countries where onion is bought, international and domestic prices. Now the quotas are allocated according to the demand of the countries where onion export is allowed.
Maharashtra is the largest onion producer in India. They are the largest supplier of onions to NCEL for export.
Earlier, Bangladesh had sent a formal letter to the Indian government to allow the export of certain quantities of onion to reduce the price of onion in the country's market during the holy month of Ramadan.
In addition, the country's government has allowed the export of additional 2000 metric tons of white onion. These onions are mainly exported to Middle East and some European countries. Due to the high production cost of white onion, its price is relatively high.
India is the world's largest onion exporter. The country's government had imposed a ban on onion exports till March 31, 2024 in December last year to maintain supply in the domestic market. Later it was extended indefinitely. The new decision to export onions is good news for India's friendly countries.