Onion exporters seek ‘fair and equitable’ distribution of export quota, ET Retail

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Exporters have knocked on the government’s doors amid an imbroglio with the Centre recently announcing onion exports in limited quantities to select countries while a wider ban on overseas shipments of the bulb vegetable continues.

Onion exporters body Horticulture Produce Exporters’ Association (HPEA) has approached the Centre seeking ‘fair and equitable’ distribution of the export quota among all exporters.

India has banned onion exports from December 7 till March 31 to rein in spiralling prices and curb inflation. However, some political leaders of the ruling BJP had recently made statements claiming that the government was going to revoke the ban. This was followed by senior government officials giving media statements that the export ban will remain. Later, the government announced that it will permit export of 54,760 tonnes of onions to Bhutan, Bahrain, Bangladesh and Mauritius.

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 written to the consumer affairs ministry requesting that export modalities should be made known to all its members to allow those interested to participate. “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.

There is a global shortage of onions, which has fuelled demand for Indian onions, especially from countries celebrating the Ramadan festival in March. Current huge profits of up to 300% on onion exports had 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.