India Lifts Onion Export Ban, Maharashtra Traders Express Concerns Over Unequal Treatment

After a nearly five-month export ban, the government has approved the export of 99,150 metric tonnes of onions, primarily from Maharashtra, to six neighboring countries. The Ministry of Consumer Affairs, Food & Public Distribution stated that this decision allows for the export of onions to Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

The export ban, imposed on December 8, 2023, aimed to ensure ample domestic onion supply due to lower Kharif and Rabi crops in 2023-24 compared to the previous year and increased international demand.

The National Cooperative Exports Limited (NCEL), responsible for onion exports to these countries, sourced the onions domestically and exported them through an e-platform at the lowest prices. NCEL supplied the onions to the agencies nominated by the destination countries at negotiated rates, with 100% advance payment.

The export quota to these countries is being fulfilled based on requisitions from the destination countries. Maharashtra, being the largest onion producer in the country, is the primary onion supplier sourced by NCEL for export.

To maintain a buffer stock, the procurement target for onions from the Rabi crop 2024 under the Price Stabilisation Fund has been set at 5 lakh tonnes this year. Central agencies like NCCF and NAFED are collaborating with local agencies to support procurement, storage, and farmer registration.

To reduce storage losses, the department plans to increase the quantum of onions to be irradiated and cold stored from 1,200 tonnes last year to over 5,000 tonnes this year, with technical support from BARC, Mumbai.

On April 25, the Centre also permitted the export of 2,000 metric tonnes of white onions from Mundra Port, Pipavav Port, and Nhava Sheva/JNPT Port in Gujarat. Traders from any state can export onions via these ports. However, traders from Maharashtra believe this decision favors Gujarat and poses logistical and financial challenges for them. Maharashtra’s Mahayuti government has been advocating for the ban to be revoked, citing unfair treatment compared to Gujarat.

The Union Agriculture Ministry’s data for onion production in 2023-24 (First Advance Estimates) indicates a decrease in production to around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year. This decline is primarily attributed to reduced output in Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan.