Govt permits export of additional 10,000 tonnes onion to UAE

The federal government has allowed the export of an extra 10,000 tonnes of onion to the UAE by way of the Nationwide Cooperative Exports Ltd (NCEL), past the 14,400 tonnes permitted on March 1. As a lot as 79,150 tonnes of onions have been authorised for export for the reason that ban on shipments was introduced on December 8, 2023.

The federal government had justified the export ban throughout FY2023-24 citing the worldwide provide state of affairs and the dry spell underEl Niño, which diminished onion output in India. Earlier than the ban, the federal government had first levied 40 per cent export obligation on onion in August 2023 after which launched a minimal export worth (MEP) in October to make sure home availability.

It has since allowed export of 550 tonnes to Bhutan, 3,000 tonnes to Bahrain, 1,200 tonnes to Mauritius, 50,000 tonnes to Bangladesh, and 24,400 tonnes to the UAE.

Time-bound or not?

Merchants, in the meantime, identified that whereas there was a ceiling of three,600 tonnes of onion exports per quarter to UAE within the March 1 notification, the April 2 notification has no such stipulation, leaving it unclear whether or not the extra 10,000 tonnes will be exported anytime past the quarter.

Not too long ago, the Centre introduced it will purchase 5 lakh tonnes (lt) of onion straight from farmers to cushion the export ban.

Rabi onion manufacturing is ready to dip 18 per cent to 193 lt in 2023-24 (July-June) from 236 lt a yr in the past. Rabi onion contributes 72-75 per cent of the nation’s annual manufacturing, making it essential for year-round availability, particularly because it has higher shelf-life in comparison with kharif onion and will be saved till December.