India Lifts Onion Export Ban: 2.60 Lakh Tons Exported Till July 2024
New Delhi, India – As of July 2024, India has exported a total of 2.60 lakh tons of onions in the financial year 2024-25. The government lifted the onion export ban on May 4, 2024, allowing exports with a minimum export price (MEP) of USD 550 per metric ton (MT) and an export duty of 40%.
Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution, BL Verma, informed the Lok Sabha in a written reply that the government had procured 4.68 lakh tons of onions, mainly from Maharashtra, through the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) for price stabilization.
Buffer stock is maintained to meet any emergencies and stabilize prices if they rise significantly during the lean supply season. Compared to last year, onion farmers have seen much higher price realizations this year. The average monthly mandi modal prices of onions in Maharashtra between April and July 2024 ranged from Rs.1,230 to Rs.2,578 per quintal, compared to Rs.693 to Rs.1,205 per quintal for the same period last year.
The average procurement price of onions for the buffer this year was Rs.2,833 per quintal, 64% higher than last year’s Rs.1,724 per quintal. India, a net exporter of onions, earned 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 from onion exports.
The export ban, effective from December 8, 2023, was implemented to increase domestic supply due to an estimated 20% decline in Kharif and late Kharif production. The restriction helped maintain stable prices until the arrival of the Rabi 2024 crop. The removal of export restrictions is expected to boost India’s onion trade and contribute to economic stability, benefiting both domestic consumers and export markets.
Rabi onions harvested during April-June account for 65% of India’s onion production and meet consumer demand until the Kharif crop is harvested in October-November.
Doubts Revealed
Onion Export Ban -: An export ban means that the government did not allow onions to be sold to other countries for some time. This was done to make sure there were enough onions in India.
Lakh -: A lakh is a unit in the Indian numbering system equal to 100,000. So, 2.60 lakh tons means 260,000 tons.
Financial Year -: A financial year is a 12-month period used for accounting purposes. In India, it starts on April 1 and ends on March 31 of the next year.
Minimum Export Price -: This is the lowest price at which onions can be sold to other countries. For onions, it was set at USD 550 per metric ton (MT).
Export Duty -: An export duty is a tax that the government charges on goods sold to other countries. For onions, it was 40%.
Union Minister BL Verma -: BL Verma is a government official in India who is responsible for certain areas, like agriculture or trade.
Price Stabilization -: Price stabilization means making sure that the prices of onions do not go up or down too much. The government buys onions to help keep prices steady.
Maharashtra -: Maharashtra is a state in India where a lot of onions are grown. It is one of the biggest producers of onions in the country.
