The Business Bytes
NEW DELHI, APRIL 27, 2024 (TBB BUREAU): The Union government has greenlit the export of 99,150 metric tons of onions to six neighboring countries: Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes amidst concerns over lower Kharif and Rabi crop yields in 2023-24 compared to previous years and rising international demand. To ensure ample domestic supply, onion export restrictions have been put in place.
Handling the export operation to these nations is the National Cooperative Exports Limited (NCEL), which procures domestic onions via an e-platform at competitive rates (L1 prices). These onions are then provided to government-nominated agencies in the destination countries at negotiated prices, with full payment upfront. NCEL’s pricing strategy considers prevailing rates in destination markets, as well as global and domestic trends. Maharashtra, as the leading onion producer, serves as the primary source for onions earmarked for export by NCEL.
Additionally, the government has permitted the export of 2,000 metric tons of white onions, specifically cultivated for markets in the Middle East and parts of Europe. Production costs for white onions are higher due to elevated seed expenses, adherence to Good Agricultural Practices (GAP), and compliance with strict Maximum Residue Limits (MRL) requirements.
Under the Price Stabilization Fund (PSF) of the Department of Consumer Affairs, a procurement target of 500,000 tons of onions from the Rabi-2024 crop has been set for this year. Central agencies like NCCF and NAFED are collaborating with local bodies such as Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and Primary Agricultural Credit Societies (PACs) to facilitate procurement, storage, and farmer registration. A high-level team comprising officials from DoCA, NCCF, and NAFED visited Nashik and Ahmednagar Districts of Maharashtra in April 2024 to educate farmers and local bodies about the procurement initiative.
To minimize storage losses, the Department of Consumer Affairs has decided to increase the quantity of onions subjected to irradiation and cold storage from 1,200 metric tons last year to over 5,000 metric tons this year. With technical assistance from BARC, Mumbai, last year’s pilot project on onion irradiation and cold storage demonstrated a storage loss reduction to less than 10 percent.
