Govt. Approves 99,150 MT Onion Exports Amid Supply Concerns

On April 27, the Indian Ministry of Consumer Affairs, Food, and Public Distribution announced that it had permitted the export of a total of 99,150 metric tons (MT) of onions to six neighboring countries. These nations include Bangladesh, the UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. 
 
The decision is made in light of lower projected Kharif and Rabi crops for the years 2023–24 as compared to previous years. This situation is further compounded by an increased demand in the international market for onions. 
 
In order to facilitate this massive export operation smoothly, the National Cooperative Exports Limited (NCEL) has been assigned as the agency responsible for exporting these goods to their respective destination countries. NCEL will source these onions from domestic producers through an e-platform at competitive prices, ensuring fair business practices. 
 
These sourced onions will then be supplied directly to either a nominated agency or multiple agencies within each destination country at previously agreed-upon rates, with full payment made upfront. 
 
Maharashtra State stands out as being one of India's largest onion producers and hence will play a key role in supplying a significant quantity for this huge export consignment. 
 
Furthering its commitment towards fostering international trade relations with other nations while also catering to specific demands, the Indian government has sanctioned an additional exportation allowance specifically earmarked for white onions, amounting to up to 2000 MT, which are primarily cultivated keeping Middle Eastern and some European markets in mind due to their particular preference for this variant. 
 
However, due consideration must be given to understanding that cultivating white onions requires higher production costs due to factors such as high seed costs and adherence to strict agricultural best practices, including maintaining compliance with the stringent maximum residue limit requirements set forth by importing nations, thus justifying their premium pricing structure over regular variants. 
 
Simultaneously, while facilitating exports on a large scale, the government remains committed to ensuring stability within domestic markets, thus setting the procurement target under the Price Stabilization Fund (PSF) at 5 lakh tons of onions for the upcoming Rabi-2024 season. 
 
For this purpose, central agencies such as the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) are working in tandem with regional agencies to facilitate procurement, storage, and farmer registration procedures effectively. 
 
A key focus area for the Department of Consumer Affairs is minimizing storage losses, which has led to a decision being taken towards increasing the quantity of onions that would be processed through irradiation and cold storage methods from the previous year's figures of 1200 MT up to over 5000 MT during the current year. 
 
The technical expertise required to implement these measures will be provided by the Bhabha Atomic Research Centre (BARC), Mumbai. The pilot project conducted last year using similar methodology resulted in less than 10 percent loss during the storage phase, thus providing confidence for scaling up operations this year. 
 
In an effort to spread awareness about the government's initiatives regarding procurement processes under the PSF buffer, a high-level team comprising officials from the Department of Consumer Affairs, NCCF, and NAFED visited Nashik and Ahmednagar districts within Maharashtra state during mid-April, where they interacted extensively with local farmers and associated entities.