The Centre on Saturday lifted the export ban imposed on onions, nearly six months after the ban. The lifting of the ban comes with certain restrictions by the Centre on the export of onions. The Centre has allowed export but at a minimum export price of $550 per tonne as well as 40 per cent export duty.
This ban on the export of onions was done earlier in December 2023 citing food inflation and supply worries ahead of Lok Sabha elections. This would control retail prices amid growing concerns over the likely fall in production.
An April 25 decision to allow 2,000 tonnes of white onion exports from Gujarat promoted a sharp reaction from opposition leaders. They alleged that Maharashtra farmers who grow red onions have been shortchanged by an extended ban.
This decision to lift the ban comes on the recommendation of the Department of Consumer Affairs, which monitors the availability and price situation of onion in the country.
‘Prices will remain stable’
Consumer Affairs Secretary Nidhi Khare on Saturday said the lifting of the ban would not lead to any price rise in retail markets. “Prices will remain stable. If at all there is any increase, it should be very marginal,” she said on Saturday.
“The mandi prices of onion in Lasalgoan Mandi [the country’s largest onion wholesale market in Maharashtra] has remained stable around ₹15 per kg since April. As a perishable crop, onion has to be consumed within five to six months so holding stocks beyond shelf life will only increase storage losses,” said the top Consumer Affairs Ministry official.
Khare said that the monthly domestic demand for onion is around 1.7 million tonnes.
“Lifting of the ban would also encourage the farmers to put more area under onions. The monsoon forecast is above normal,” Khare said.
Centre eyes onion prices
A senior government official has informed the formation of an inter-ministerial committee (IMC) which reviews prices, production, availability and export of essential food items including onions.
“So do not think of this as an isolated instance of decision-making by IMC,” the official said when asked whether the decision has been made in view of general elections.
The centre has also taken permission from the Election Commission before lifting the ban keeping in mind the ongoing model code of Conduct due to Lok Sabha elections, sources said.
No Supply problems
India’s monthly domestic consumption of onions was about 17 lakh tonnes. The rabi supplies are expected to be comfortable due to an above-normal monsoon forecast this year.
Last month, in an official statement, the Ministry of Consumer Affairs, Food and Public Distribution said the government has allowed the export of 99,150 tonnes of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.
