Question : Export of Onion

(a) whether the Government has allowed the export of onion from the country and consequently the volume of export of onion has also increased in the recent past which has resulted in an increase in onion prices in the market; if so, the current details of the agricultural products;

(b) if so, the details thereof;

(c) the total volume of onion exported to other countries during the last one year, country-wise along with the income generated therefrom; and

(d) the steps being taken or proposed to be taken to reduce the price of onion, so as to make it affordable for the poor?

MINISTER of AGRICULTURE AND FARMERS WELFARE

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(a) &(b): The export of Onion was free which was prohibited vide DGFT Notification No. 31/2015-20 dated 14.09.2020 to deal with shortage in supply and increased domestic prices. The prohibition was liftedw.e.f 01.01.2021 vide DGFT Notification no 50/2015-21 dated 28.12.2020 in view of good prospects of Kharif and late Kharif production estimates. After recent lifting of the ban, the export of onion in the months of January & February, 2021 has been 0.56 LMT and 0.31 LMT respectively, as against monthly average export of 2.18 LMT prior to imposition of ban in September, 2020. The All India average retail prices of onion in December, 2020 was Rs. 44.33/kg whereas during January 2021 and February 2021 the prices have been Rs. 38.59/kg and Rs 44.08 /kg, respectively.

(c): Country-wise details of the export of onion during the year 2019-20 in terms of volume and value are annexed at Annexure.

(d): Government released onion from the buffer stock of 1 LMT created from Rabi-2020 onion in a calibrated manner to moderate prices of onion since September, 2020. Government imposed ban on onion export w.e.f. 14th September, 2020. The government also invoked the EC Act and imposed stock limit of 25 MT for wholesaler and 2 MT for retailer w.e.f. 23.10.2020. With the arrival of Kharif onion, the Government conveyed approval for procurement of 1 LMT onion Kharif 2020 to recoup the buffer for further retail intervention.

To augment domestic availability of onion through import, government eased the fumigation and quarantine norms and also accorded approval for procuring and disposal of imported onion by National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) at pre-decided ceiling price through issue of tenders at regular intervals. As a result of these measures, onion import came in significant quantities from October onward, and by the end of December, 2020 a total of over 65,546 MT was imported.
The price of onion has been on declining trend from November, 2020 and by December, 2020 prices in the mandis were reported to be significantly low. Retail price had also declined substantially. Accordingly, ban on onion export was lifted w.e.f 01.01.21 and stock limit was also allowed to lapse w.e.f 01.01.21.
For 2021-22, the Price Stabilization Fund (PSF) for onion buffer target of 2 LMT has been approved. The buffer would be built by procuring Rabi-2021 for onion arriving from March, 2021.