Pre-poll sop? 2,000 tonnes of white onion exports allowed

Ban on onion exports partially relaxed again, paving way for “immediate” export of 2,000 tonnes of white onions, primarily grown in Gujarat, from three designated ports.

In a surprise move, the Union government on Thursday partially relaxed the indefinite ban on onion exports again, paving the way for the “immediate” export of 2,000 tonnes of white onions, primarily grown in Gujarat, from three designated ports.

A notification issued by the Directorate General of Foreign Trade (DGFT) said that exports of white onions would be permitted only after Gujarat’s Horticulture Commissioner certifies the item and quantity being exported.

While previous relaxations to the ban specified the countries where shipments could go and mandated that such exports be channelled through the National Cooperative Exports Limited (NCEL), the latest notification sets no such conditions. It only stipulates that the exports must be routed through the Gujarati ports of Mundra and Pipavav, or Nhava Sheva in Mumbai.

Incidentally, horticulture exporters are learnt to have written to the Commerce Ministry and the DGFT on April 13 to ascertain if any relaxation is in the offing for white onion exports, citing reports of ongoing procurement of export quality white onions at one of Gujarat’s Agricultural Produce Market Committees (APMCs).

Gujarat is the predominant producer and exporter of white onions in the country, with districts like Bhavnagar and Amreli — which go to the polls on May 7 — accounting for a large part of the produce.

The latest relaxation has triggered some disquiet among onion farmers from neighbouring States like Maharashtra who grow red onions. “Don’t farmers outside Gujarat also deserve export opportunities now that [domestic] wholesale prices for red onions have cooled,” asked a farmers’ representative from Nashik.

Ajit Shah, president of the Horticulture Produce Exporters’ Association or HPEA, said that permitting white onions’ exports without specifying the destination country or agency through which they will be channelled, is a step forward. “The same relaxations must be offered for red onions, as well as smaller size onions [40 mm or less] that are generally not consumed in local markets,” he told The Hindu.