India greenlights limited onion exports to Bangladesh, 3 other countries
Traders will be allowed to export this quantity till 31 March, while the modalities are still being worked out.
The Indian government today (22 February) permitted traders to export a total of 54,760 tonnes of onion to Bangladesh, Mauritius, Bahrain and Bhutan till 31 March.
"We have allowed export of 50,000 tonnes of onion to Bangladesh, 1,200 tonnes to Mauritius, 3,000 tonnes of Bahrain and 560 tonnes to Bhutan with immediate effect," Consumer Affairs Secretary Rohit Kumar Singh said, The Hindu reports.
Traders will be allowed to export this quantity till 31 March, while the modalities are still being worked out.
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Singh said the decision was taken following a recommendation from the External Affairs Ministry.
Currently, there is a ban on onion exports till 31 March.
The ban was imposed on 28 December 2023 to boost the domestic supply and check price rise.
The price of onions in Bangladesh nearly doubled overnight following news of India's extension of its export embargo on the essential commodity last December.
In fiscal year 2023-24 (FY23), onion imports stood at 7.43 lakh tonnes, while the figures were 6.65 lakh tonnes in FY22, 5.53 lakh tonnes in FY21, and 5.71 lakh tonnes in 2019-20.
According to the Ministry of Agriculture, 34 lakh tonnes of onions are locally produced annually, with post-harvest losses accounting for 25% or more.
Ministry of Commerce data indicate that 85% of demand is met domestically, with the remainder reliant on imports, suggesting no imminent shortage.
The government in August last year decided to allow the import of onions from nine other countries in addition to India to curb rising prices.
At the time, onion imports were allowed from China, Egypt, Pakistan, Qatar, Turkey, Myanmar, Thailand, Netherlands and the United Arab Emirates.
Initially, a few permits were taken to import from various countries, but later the traders did not show much interest.
Challenges such as the dollar exchange rate and a crisis deterred traders from importing onions, resulting in minimal quantities from alternative countries.
During the period (September-November), only 1,938 tonnes of onions were imported. Of this, 1,102 tonnes came from Pakistan and 836 tonnes from China.
Bangladesh imported 7.05 lakh tonnes of onions from 5 June to 7 December, against the approved 19.90 lakh tonnes, according to sources at the Department of Agricultural Extension.
