India has allowed the export of 50 thousand tons of onion to Bangladesh

Patrick D Costa

India’s ruling BJP government has allowed the export of 50 thousand tons of onions to Bangladesh.

India’s ruling BJP government has allowed the export of 50 thousand tons of onions to Bangladesh. These onions will be exported to Bangladesh through the country’s state-owned organization National Cooperative Export Limited (NCEL). This information was informed in a notification of the Office of the Director General of Foreign Trade (DGFT) of India on Monday. It is said that New Delhi will export 14 thousand 400 tons of onion to United Arab Emirates in addition to Bangladesh.

DGFT is the agency responsible for overseeing foreign trade under the Ministry of Commerce of India. The organization works with the rules and regulations related to import and export of the country. In the notification, the agency said, NCEL will prepare the export outline of onion in consultation with the consumer affairs department.

According to the country’s media NDTV, although India’s ban on onion export remains in place, the country’s government has allowed a certain amount of onion to be exported to some friendly countries. Government of India has given this permission to export certain quantity of onion based on the request of the countries.

Earlier, on February 19, on the recommendation of the Indian Ministry of External Affairs, New Delhi allowed the export of onions to Bangladesh in limited quantities.

India is the second largest onion exporter in the world market. In December last year, the country’s government imposed a ban on onion exports to stabilize the local market. The country has extended the ban on onion exports till next March for the second phase to control rising prices and ensure adequate supply in the Indian market ahead of national elections.

The country’s government initially imposed a 40 percent tariff on onions to discourage exports. At that time, the notification of the country’s Ministry of Commerce said, “In order to increase the supply in the country’s market, the government has imposed a 40 percent duty on onion exports.”

Still India banned the export of onion completely due to failure of expected results. At that time, it was said that this ban on onion export will remain in effect until March 31. In October last year, the country’s government decided to increase stocks with a target of selling onion at Rs 25 per kg at the retail market with a subsidy to provide relief to consumers.

Government of India has taken several steps to control the price of onion in the domestic market. On October 28 of that year, the country’s central government set a minimum price of USD 800 per ton of onions. At that time, it was reported that this new price limit will be effective till December 31, 2023.

Between April 1 and August 4 last year, 75 lakh 50 thousand tons of onions were exported from the country. India’s top three onion exporters to the world are Bangladesh, Malaysia and the United Arab Emirates.

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