The Indian government has imposed a ban on onion exports until March 2024. Retail onions cost Rs 60 per kilogram. The government mandates a USD 800 per-tonne minimum export price. Allows Bangalore Rose Onion export exemption.
India prohibited onion exports until March 2024, a late Thursday evening notification said. However, the DGFT letter stated that onions can be exported provided the central government grants other countries’ requests. Retail onions in India cost roughly Rs 60 per kilogram. To control princess and bolster domestic supplies till year-end, the government placed a 40% tariff on onion exports in August.
From October 29, the central government announced a free-on-board Minimum Export Price (MEP) of USD 800 per tonne for onion exports.
Though, the central government exempted the export of ‘Bangalore rose onion’ from export duty, with a small catch: the exporter must provide a certificate from the Horticulture Commissioner, Government of Karnataka, certifying the item and quantity of Bangalore Rose Onion to be exported.
Bangalore rose onion is grown in Bengaluru, Karnataka. It received Geographical Indication status in 2015.
Due to soaring onion costs, the central government is releasing the basic vegetable from buffer stock. The central government has earmarked 3 lakh tonnes of onions as buffer stock for 2023-24. In 2022-23, the government held 2.51 lakh tonnes of onion buffer stock.
Buffer stock is kept for emergencies and price stabilization if rates rise high during lean supply season.
India produces 65% of its onions from April to June, which covers consumer demand until October-November, when the Kharif crop is harvested.
Conclusion
India has prohibited onion exports till March 2024, allowing them to foreign countries with central government clearance. Retail onions cost roughly Rs 60 per kilogram. To curb princess and increase domestic supplies, the government slapped a 40% onion tariff in August. Onions’ MEP was USD 800 per tonne. Bangalore Rose Onion exports were duty-free if exporters provided a certificate from the Horticulture Commissioner, Government of Karnataka. The central government has started releasing onions from its buffer stock to address emergencies and stabilize prices if rates rise dramatically during lean supply season.
