The Central government has allowed export of 99,150 mt of onion to six countries – Bangladesh, the UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.

According to a press release, the decision comes against the backdrop of lower estimated Kharif and Rabi crops in 2023-24 compared to those of the previous year, coupled with increased demand in the international market.

National Cooperative Exports (NCEL) has been designated as the agency responsible for exporting onions to these countries.

NCEL will be sourcing the onions from domestic producers through an e-platform at competitive prices. The onions will be supplied to the nominated agency or agencies of the destination countries at negotiated rates, with 100 per cent advance payment.

Maharashtra, being the largest onion producer in the country, will be a major supplier of onions for export.

Additionally, the government has permitted the export of 2,000 mt of white onion, specifically cultivated for export markets in the Middle East and some European countries.

The production cost of white onions is higher due to factors such as higher seed costs, adoption of good agricultural practices and compliance with strict maximum residue limits requirements.

In order to ensure domestic stability, the government has set a procurement target of 5 lakh tonnes of onions under the Price Stabilisation Fund (PSF) for the Rabi-2024 season.

Central agencies such as the National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) are collaborating with local agencies to support procurement, storage and farmers’ registration.