The Hindu - International

Centre allows ‘immediate’ export of 2,000 tonnes of white onions

- Vikas Dhoot

In a surprise move, the Union government on Thursday partially relaxed the inde’nite ban on onion exports again, paving the way for the “immediate” export of 2,000 tonnes of white onions, primarily grown in Gujarat, from three designated ports.

A noti’cation issued by the Directorat­e General of Foreign Trade (DGFT) said that exports of white onions would be permitted only after Gujarat’s Horticultu­re Commission­er certi’es the item and quantity being exported.

While previous relaxation­s to the ban speci’ed the countries where shipments could go and mandated that such exports be channelled through the National Cooperativ­e Exports Limited (NCEL), the latest noti’cation sets no such conditions. It only stipulates that the exports must be routed through the Gujarati ports of Mundra and Pipavav, or Nhava Sheva in Mumbai.

Gujarat crop

Incidental­ly, horticultu­re exporters are learnt to have written to the Commerce Ministry and the DGFT on April 13 to ascertain if any relaxation is in the o¥ng for white onion exports, citing reports of ongoing procuremen­t of export quality white onions at one of Gujarat’s Agricultur­al Produce Market Committees (APMCs).

Gujarat is the predominan­t producer and exporter of white onions in the country, with districts like Bhavnagar and Amreli — which go to the polls on May 7 — accounting for a large part of the produce.

The latest relaxation has triggered some disquiet among onion farmers from

neighbouri­ng States such as Maharashtr­a who grow red onions. “Don’t farmers outside Gujarat also deserve export opportunit­ies now that [domestic] wholesale prices for red onions have cooled,” asked a farmers’ representa­tive from Nashik.

‘A step forward’

Ajit Shah, president of Horticultu­re Produce Exporters’ Associatio­n (HPEA), said that permitting white onions’ exports without specifying the destinatio­n country or agency through which they will be channelled is a step forward. “The same relaxation­s must be o¦ered for red onions, as well as smaller size onions [40 mm or less] that are generally not consumed in local markets,” he told The Hindu.

While red onion prices in wholesale markets have dropped to about ₹11 to ₹12 per kg, white onion prices are around ₹16 to ₹17, he said. “It’s now nearly six months since onion exports were banned and we have enough stocks, while prices are lower. So, as and when the government does permit additional exports, it must open them to all traders and farmers,” he mooted.

Diplomatic exceptions

The relaxation is for white onions, primarily grown in Gujarat that goes to the polls on May 7

Fearing a shortage of the politicall­y sensitive crop, the Union government had banned onion exports in December 2023. Last month, the curbs were extended ‘till further orders’. However, it had kept the window open for exports to countries making requests through diplomatic channels.

On March 1, 14,400 metric tonnes (MT) of onion exports were permitted for the United Arab Emirates, with a quarterly cap of 3,600 MT. Through two more noti’cations this month, an additional 20,000 MT of onions have been approved for the UAE “over and above” the quarterly quota, and 10,000 MT have been permitted for Sri Lanka.

 ?? FILE PHOTO ?? Farmers arrive with fresh stock of white onion at a market in Mahuva, Gujarat.
FILE PHOTO Farmers arrive with fresh stock of white onion at a market in Mahuva, Gujarat.

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