Indian government has recently authorized the export of 99,150 metric tons (MT) of onions to six neighboring countries including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes against the backdrop of lower Kharif and Rabi crops estimated for the year 2023-24, compared to the previous year, coupled with an increase in demand in the international market.

To facilitate the export process, the National Cooperative Exports Limited (NCEL) has been designated as the agency responsible for exporting onions to these nations. Domestic onions are being sourced through an e-platform at L1 prices and supplied to the designated agencies nominated by the destination countries, based on a negotiated rate and 100% advance payment basis. The offer rate by NCEL takes into consideration prevailing prices in the destination market, as well as the dynamics of both international and domestic markets. Maharashtra, as the largest onion producer in the country, is a key supplier of onions sourced by NCEL for export.

In addition to the export to neighboring countries, the government has also allowed the export of 2000 MT of white onions, cultivated specifically for export markets in the Middle-East and some European countries. The production cost of white onions is comparatively higher due to factors such as increased seed cost, adoption of good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements.

To stabilize onion prices and ensure adequate buffer stocks, the government has set a procurement target of 5 lakh tons of onions under the Price Stabilization Fund (PSF) for the Rabi-2024 crop. Central agencies like NCCF and NAFED are collaborating with local agencies such as Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and Primary Agricultural Credit Societies (PACS) to support procurement, storage, and farmer registration processes.

Furthermore, efforts are underway to reduce storage losses through enhanced irradiation and cold storage techniques, with technical support from BARC, Mumbai. Last year’s pilot project on onion irradiation and cold storage resulted in a significant reduction in storage losses to less than 10 percent, prompting an increase in the quantum of stocks to be treated this year to over 5000 MT.