Onion Price: Centre Bans Onion Export Till March 2024 To Ensure Availability To Domestic Consumer
Know about the ban on onion exports and the procurement efforts by the centre to stabilise prices.
The Centre on Monday has put the export of onion under prohibition with effect from December 8, 2023 till March 31, 2024 to ensure availability of onion to the domestic consumers at affordable prices.
The Government took the decision taking into account delay in Kharif arrival, the quantity of onion exported and global situation such as trade and non-trade restrictions imposed by major suppliers such as Turkey, Egypt and Iran.
To ensure that farmers are not adversely affected, the government is continuously procuring onions from the farmers under the Price Stabilisation Fund.
Centre directs NCCF and NAFED to procure 7 lakh tonnes of onion
In 2023, the Government directed National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to procure 7 lakh tonnes of onion for the buffer. Till date, about 5.10 lakh tonnes had been procured, and procurement of remaining quantity is ongoing. Onions procure by the government are continuously disposed in high price markets through open market sales and direct retail sales to consumers. Out of 2.73 lakh tonnes of onion disposed from the buffer, nearly 20,700 MT has been sold to retail consumers in 213 cities through 2,139 retail points. Due to these multi-pronged interventions, the all-India average retail price for onion has been brought down from Rs. 59.9 per kg on 17 November to Rs.56.8 per kg on December 8.
It may be noted that on October 29, the government has imposed Minimum Export Price (MEP) of USD 800 per ton for onion exports and simultaneously disposing onion buffer stock. While the MEP had been effective in reducing the quantum of onion exports, sizable quantities continued to be exported due to global situation and delayed arrival of kharif crop.
The procurement of onions from farmers under the Price Stabilisation will continue to ensure remunerative prices to farmers and both wholesale and retail interventions will continue in high price markets to make onions available to consumers at affordable prices.
