In a friendly gesture ahead of the Eid festival, the Indian government has allowed the export of an additional 10,000 tonnes of onion to the UAE through the NCEL. This comes in addition to the 14,400 tonnes permitted earlier, as part of efforts to fulfill commitments to friendly countries amid rising domestic prices.
The decision, announced by the DGFT, brings the total approved export quantity to 79,150 tonnes, following a ban on onion exports in December 2023. The move was prompted by global supply dynamics and dry weather conditions induced by El Nino, necessitating policy measures to regulate onion exports during FY 2023-24.
To address soaring onion prices, the government has been releasing the staple vegetable from its buffer stock and directing NCCF and NAFED to procure 5 lakh tonnes directly from farmers during the Rabi-2024 harvest. Rabi onion production accounts for 72-75% of the country’s annual output and ensures year-round availability due to its superior shelf life compared to Kharif onions.
Procurements by NAFED and NCCF have not only supported onion farmers with remunerative prices throughout 2023 but also catered to consumer interests. The government has taken a series of measures like imposing export duties, setting a Minimum Export Price, and export prohibitions to maintain stable onion availability and affordability in the domestic market.
