Curbs on onion export withdrawn

The government has withdrawn the 'export licence' restriction for overseas sale of onion, as the prices of commodity have started to soften in domestic market.

The Director General of Foreign Trade has notified that the export of onions could be undertaken after getting the no-objection certificate from NAFED and 12 other state trading agencies (STEs).

The DGFT on October 15 had made it mandatory for exporters to get a licence from it before undertaking export of onions following soaring prices in domestic market. This was in addition to the no-objection certificate through which onions are exported.

The government also raised the export prices of onion, politically a sensitive commodity, to bring down the domestic prices which went as high as Rs 30 a kg in many parts of the country. However, retail prices of onion have now come down to Rs 16-18 a kg.

The decision to regulate overseas sale coupled with hike in the minimum export price (MEP) had resulted in a sharp decline in the onion exports during October.

Onion exports have plummeted by 44 per cent during the last month to 22,500 tonnes compared with 40,490 tonnes in the previous month.

"Literally, there was no export taking place after the licence norm was introduced. Only those who had no-objection certificates procured earlier were sending the consignments," a trader said.

Meanwhile, NAFED has written to the 12 other notified agencies, who also issue the no-objection certificate, to communicate their views regarding MEP.

"We have asked them to tell us what should be the MEP and whether it should be reduced," a NAFED official said.

On October 31, NAFED had decided not to tinker with MEP for November in view of festival season as retail prices were yet to come down substantially.

NAFED along with the 12 agencies decide every month the MEP of onion.

The 12 agencies include Maharashtra State Agricultural Marketing Board, Gujarat Agro Industries Corporation, Spices Trading Corporation, A P State Trading Corp, Karnataka State Cooperative Marketing Federation, National Cooperative Consumers Federation, North Karnataka Onion Growers Cooperative Society and others.