India allows export of 10,000 tonnes of onion to Sri Lanka, eases ban

Directorate General of Foreign Trade says India has approved 79,160 tonnes of onions for export, overriding a ban imposed in December

India’s Directorate General of Foreign Trade (DGFT) has permitted the export of 10,000 tonnes of onions to Sri Lanka, according to a report in Mint newspaper.

A DGFT notification said that as of now India has approved 79,160 tonnes of onions for export via the National Cooperatives Exports Cooperative, overriding a ban on shipments imposed in December last year.

Mint reported that recently, India’s government granted permission for an extra 10,000 tonnes of onion exports to the United Arab Emirates (UAE), in addition to the previously approved 24,400 tonnes.

In Financial Year 2023-24, the government restricted onion exports due to tight global supplies and a dry spell induced by the El Nino weather phenomenon.

Mint reported that in August, India imposed a 40 per cent duty on the export of onions to check price rise and improve supplies in the domestic market until December 31, 2023. The government had also imposed a ban on onion exports during the period between December 8, 2023 and March 31, 2024. This ban has now been extended indefinitely. However, the notification said that onion exports will be permitted only upon approval from the central government, which will consider requests from other countries.

The newspaper said that amid increasing onion prices, India has been tapping into its reserved onion stockpile. Initially, the government had earmarked 300,000 tonnes of onions as buffer stock for the 2023-24 season. This marked an increase from the 251,000-tonne buffer stock maintained in the 2022-23 season. Furthermore, the government commenced procurement of rabi onions in April for the 2024-25 season, against the usual practice of starting in June. The government's target is to procure 500,000 tonnes of onions during the 2024-25 rabi season, according to the Mint report.