National Cooperative Export Ltd (NCEL), the government's export agency of India has announced plans to purchase 1,650 tonnes of onions from private traders at Rs 29/kg for export to Bangladesh, according to a report by The Economic Times (ET).
This move marks the first official export of onions from India in over three months, following the government's ban on exports from December 8 to March 31.
In the first week of March, the Centre permitted the export of 64,400 tonnes of onions to countries that had made formal requests through diplomatic channels. Of this quota, 50,000 tonnes were allocated to Bangladesh, with the remaining 14,400 tonnes going to the UAE.
India's export restrictions on onions were implemented to address surging domestic prices, which had led to concerns about affordability and availability.
The ban also contributed to a spike in international prices due to reduced global supply, particularly during the peak demand period associated with Ramadan in traditional markets like Bangladesh, West Asia, and Southeast Asia.
Onion exporters highlighted the prevalence of smuggling activities, accounting for more than 50 per cent of the trade volume during normal conditions since the imposition of the export ban.
Currently, wholesale onion prices in Maharashtra's Nashik district range from Rs 7/kg to Rs 16/kg. Prices are expected to decline further with the ongoing arrival of fresh rabi harvest.
While the exact selling price of onions to Bangladesh by NCEL remains undisclosed, the ET report predicts substantial profits for the export agency, with onions currently priced at Rs 80-90/kg in the Bangladeshi market.
India typically dominates the global onion market between the months of January to March. This year, however, the arrival of new crops from Egypt and Turkey in May is expected to alleviate global shortages.
Between April 1, 2023, and August 4, 2023, a total of 975,000 tonnes of onions were exported from India, with Bangladesh, Malaysia, and the UAE emerging as the top importing countries in terms of value.
The Indian government initially imposed restrictions on onions in October 2023 by implementing a minimum export price (MEP) of $800 per tonne until December 31, 2023. Additionally, a 40 per cent export duty was imposed on onions until the same date.
Source: Business Standard
BDST: 1608 HRS, MAR 18, 2024
MN/SMS
