India Permits Onion Exports to UAE

Despite restrictions on onion exports, the Indian government has granted approval for shipping 50,000 tonnes to Bangladesh and 14,400 tonnes to the UAE. Notably, a quarterly ceiling of 3,600 tonnes for exports to the UAE has been established, according to the Directorate General of Foreign Trade (DGFT). The National Cooperative Exports Limited (NCEL) will coordinate the modalities for onion exports to Bangladesh in consultation with the Department of Consumer Affairs.

In December 2023, India had imposed a ban on onion exports until March 2024. However, the DGFT notification indicates that onion exports will be permitted based on central government approval, responding to requests from other nations.

To manage rising onion prices, the government had earlier implemented a 40% export duty and a Minimum Export Price (MEP) of $800 per tonne on a free-on-board basis until December 31, 2023. Notably, 'Bangalore rose onion' remained exempt from export duty, provided exporters furnish a certificate from the Horticulture Commissioner, Government of Karnataka, specifying the item and quantity.

Facing escalating onion prices, the central government has been releasing onions from its buffer stock, maintaining a reserve of 300,000 tonnes for the 2023-24 season. This buffer stock serves as a contingency measure for price stabilization during lean supply seasons.

Rabi onion, harvested between April and June, constitutes 65% of India's total onion production. It plays a crucial role in meeting consumer demand until the Kharif crop is harvested in October-November. The government's interventions and buffer stock maintenance aim to ensure market stability and manage onion prices effectively.