New Delhi: The Indian government has lifted the prohibition on onion exports from May 4, 2024, allowing the export of 2.60 lakh tons of onions until July 31, 2024, with a minimum export price (MEP) of USD 550 per MT and an export duty of 40%. This move marks a significant change in the country’s onion trade policy for the current financial year 2024-25.
In addition to allowing exports, the government has procured 4.68 lakh tons of onions, primarily from Maharashtra, through the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) for the price stabilization buffer. This procurement aims to ensure stable onion prices and support farmers.
Compared to the previous year, the price realization for onion farmers has been considerably higher in 2024. Between April and July 2024, the average monthly mandi modal prices of onions in Maharashtra ranged from Rs.1,230 to Rs.2,578 per quintal, significantly higher than the Rs.693 to Rs.1,205 per quintal during the corresponding period in 2023. The average procurement price for the buffer stock this year was Rs.2,833 per quintal, a 64% increase from last year’s procurement price of Rs.1,724 per quintal.
India, being a net exporter of onions, benefits economically from the export. The net export value earned by India over the last three years has been substantial, amounting to Rs.3,326.99 crore in 2021-22, Rs.4,525.91 crore in 2022-23, and Rs.3,513.22 crore in 2023-24.
The decision to lift the export ban and allow onion exports with a set MEP and export duty is expected to provide a boost to onion farmers by ensuring better price realization and promoting international trade. The government’s procurement efforts aim to stabilize prices and support the domestic market, ensuring a balanced approach to both local consumption and export demands.