The Indian Ministry of Consumer Affairs, Food & Public Distribution announced today that India has authorized the export of 99,150 tonnes of onions to six neighboring countries, including Bangladesh, despite a domestic ban on shipments. The other five countries include the UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

The Indian government imposed the ban on onion exports on December 8, 2023, to ensure sufficient domestic availability amid lower Kharif and Rabi crop production estimates for 2023-24 compared to the previous year. However, the surge in onion prices in Bangladesh following the ban caused hardships for consumers

According to the statement, the allocated quotas for export to these countries are being fulfilled based on requests made by the respective destination countries. The National Cooperative Exports Limited (NCEL), responsible for onion exports to these nations, procured domestic onions for export through an e-platform at the lowest prices (L1).

The NCEL supplied onions to the designated agency or agencies nominated by the destination country's government at negotiated rates, with payment made in advance. The offer prices by NCEL consider prevailing prices in the destination market, as well as international and domestic markets.

Maharashtra, the largest onion producer in India, serves as the primary onion supplier sourced by NCEL for export. Additionally, India permitted the export of 2000 metric tonnes of white onions, specifically cultivated for export markets in the Middle East and certain European countries.

White onion production, being export-oriented, incurs higher production costs due to elevated seed expenses, adoption of good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements.