The recent surge in onion prices at Azadpur Mandi in Delhi, ranging from Rs 17-27 per kg, can be attributed to a pivotal decision made by the Central Government. The government has approved the export of 64,400 tonnes of onions to the uae and bangladesh through the National Cooperative Exports Limited (NCEL). A notification from the Directorate General of Foreign Trade (DGFT), a branch of the Commerce Ministry, outlines the approval of exporting 14,400 tonnes of onions to the UAE.
Notably, a quarterly limit of 3,600 tonnes per quarter has been set for onion exports through the NCEL. This development comes against the backdrop of restrictions imposed on onion exports last year due to a surge in domestic prices. The export ban, enforced from december 2023 to march 2024, was subsequently relaxed in February. At that time, the government permitted limited onion exports to neighbouring countries such as bangladesh, Sri Lanka, Nepal, and Bhutan. Additional permissions were granted for exports to mauritius and Bahrain, among others.
The repercussions of these export decisions are evidently felt in the domestic market, as reflected in the recent upswing in onion prices. The likelihood of further price hikes looms large, considering the significant volume of onion exports approved by the government. This scenario underscores the intricate relationship between export policies and their impact on local onion availability and pricing dynamics.
click and follow Indiaherald WhatsApp channel