Exporters have approached the government seeking clarity amidst an imbroglio, with the Centre recently announcing limited onion exports to select countries while maintaining a broader ban on exporting the bulb vegetable overseas.
The Horticulture Produce Exporters’ Association (HPEA) has approached the Centre, seeking ‘fair and equitable’ distribution of the export quota among all exporters.
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India imposed a ban on onion exports from December 7 to March 31 to control escalating prices and curb inflation. Despite recent claims by some political leaders from the ruling BJP suggesting a reversal of the ban, senior government officials reaffirmed that the export prohibition would persist. Subsequently, the government announced the allowance of exporting 54,760 tonnes of onions to Bhutan, Bahrain, Bangladesh, and Mauritius.
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A leading onion exporter from Maharashtra, who spoke to ET on condition of anonymity, alleged that only three to four exporters have been given a share of the export quota for select countries.
“The importers from our overseas markets have told us that a few of the Indian traders have received letters for export of onions. The same group of exporters is inquiring in the market for rail transport from Nashik to Kolkata for export to Bangladesh and have started buying onions,” this exporter said.
HEPA has sent a letter to the consumer affairs ministry, urging for transparency in export procedures so that all its members can be informed and participate if interested.
“We pray your good self to follow a fair, just and equitable system for distribution of the quantity to our associate members,” wrote HEPA in a letter to the ministry.
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There is a global shortage of onions, which has fueled demand for Indian onions, especially from countries celebrating the Ramadan festival in March. The current huge profits of up to 300% on onion exports have also led to smuggling of onions.
“There is confusion about what are the modalities of exports that the central government wants to follow. We are hearing that it could appoint agencies like NAFED as canalising agencies. Even if they appoint canalising agencies, we hope that they would not allow only a few exporters to corner the quota,” said another exporter, who requested not to be identified.