Chennai: While exports have been prohibited, governthe ment has allowed the shipment of close to one lakh metric tonnes of onions to six countries.
Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to the previous year and increase in demand in the international market.
Meanwhile, the government has allowed exports of 99,150 MT of onion to six countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. The quota allocated for exports to the six countries is being supplied as per requisition made by the destination country.
The National Cooperative Exports (NCEL), the agency for the export of onion to these countries, sourced the domestic onions to be exported through the e-platform at L1 prices or lowest bidding prices and supplied to the agency or agencies nominated by the government of the destination country at the negotiated rate on 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.
As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export, the government said in a release.
The government had also allowed the export of 2000 MT of white onion cultivated specially 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 with strict maximum residue limits requirements.
The procurement target for onion buffer out of Rabi-2024 under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 lakh tonnes this year.
In order to reduce the storage loss of onions, the Department of Consumer Affairs decided to enhance the quantity of stocks to be irradiated and cold stored from 1200 MT last year to over 5000 MT 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.
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