DGFT Amends Export Policy Of Onion From “Free” To “Prohibited” Till March 31, 2023


India has banned the export of onions till March 2024, an official notification issued late Thursday evening said. The DGFT notification said the export of onions will, however, be allowed based on the permission granted by the central government to other countries based on their request. Onions are currently priced at around Rs 60 per kg in the retail markets in India. In August, the government had imposed a 40 percent duty on the exports of onions to control the rise in princess and boost supplies in the domestic market until the year-end.

The central government subsequently set a Minimum Export Price (MEP) of USD 800 per tonne on a free-on-board basis for the export of onions with effect from October 29.

The central government had, though, exempted the export of ‘Bangalore rose onion’ from the export duty, with a small rider — goods meant for export shall be allowed to be exported subject to the exporter furnishing 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 a variety of onion grown in and around Bengaluru, Karnataka. It got the coveted Geographical Indication tag in 2015.

Faced with rising onion prices, the central government has been releasing the staple vegetable from its buffer stock. The central government had earlier decided it would maintain 3 lakh tonnes of onions in the 2023-24 season as buffer stock. In 2022-23, the government maintained 2.51 lakh tonnes of onion as buffer stock.

Buffer stock is maintained to meet any exigencies and for price, stabilization if rates go up significantly during the lean supply season.

Rabi onion harvested during April-June accounts for 65 percent of India’s onion production and meets the consumer’s demand till the Kharif crop is harvested in October-November.

Source: https://www.indiatvnews.com/business/news/

Leave a Reply

Your email address will not be published. Required fields are marked *