India Allows Export of Onions to UAE and Bangladesh Amidst Ban

Team Finance Saathi

04/Mar/2024

Discover how India has permitted the export of onions to the UAE and Bangladesh through the National Cooperative Exports Ltd (NCEL), despite an existing ban on onion exports.

India has made a significant decision to permit the export of onions to the UAE and Bangladesh, totaling 64,400 tonnes, via the National Cooperative Exports Ltd (NCEL). This move comes despite the government's ban on onion exports, indicating exceptions made for specific quantities to friendly nations.

The Directorate General of Foreign Trade (DGFT), an arm of the commerce ministry responsible for import-export norms, announced the permission for onion exports to the UAE and Bangladesh. Specifically, 14,400 tonnes of onions are allocated to the UAE, with a quarterly ceiling of 3,600 MT, while 50,000 tonnes are sanctioned for shipment to Bangladesh.

Although the ban on onion exports is in place until March 31 this year to bolster domestic availability and stabilize prices, the government allows specified quantities to countries upon their request. This strategic decision aligns with India's commitment to maintain cordial relations with its neighboring nations.

Earlier initiatives by the government to control onion prices include the subsidization of buffer onion stock sales and the imposition of minimum export prices (MEP) and export duties. Despite these measures, onion exports have remained politically sensitive due to their impact on domestic prices and availability.

NCEL, a multi-state cooperative society, plays a pivotal role in facilitating these exports. It is jointly promoted by prominent cooperative societies such as the Gujarat Cooperative Milk Marketing Federation (GCMMF) or AMUL, Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO), and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).

India's decision to allow limited onion exports underscores its diplomatic efforts to balance domestic needs with international commitments, promoting cooperation and trade relations with neighboring countries.

Disclaimer

The information provided on this website is for educational and informational purposes only and should not be considered as financial advice, investment advice, or trading recommendations.

Trading in stocks, forex, commodities, cryptocurrencies, or any other financial instruments involves high risk and may not be suitable for all investors. Prices can fluctuate rapidly, and there is a possibility of losing part or all of your invested capital.

We do not guarantee any profits, returns, or outcomes from the use of our website, services, or tools. Past performance is not indicative of future results.

You are solely responsible for your investment and trading decisions. Before making any financial commitment, it is strongly recommended to consult with a qualified financial advisor or do your own research.

By accessing or using this website, you acknowledge that you have read, understood, and agree to this disclaimer. The website owners, partners, or affiliates shall not be held liable for any direct or indirect loss or damage arising from the use of information, tools, or services provided here.

Services

India Allows Export of Onions to UAE and Bangladesh Amidst Ban

Related News

Disclaimer