Centre implements export restrictions on onions to stabilize domestic supply and prices: Goyal

Nashik: Union minister of commerce and industry Piyush Goyal in a written reply to Nashik MP Rajabhau Waje said that as far as export policy of onions is concerned, the Centre has imposed restrictions on onion exports considering the tight domestic supply condition.
"The restrictions on onion exports are done to ensure availability of onions for domestic consumers at reasonable prices," said Goyal.
Waje asked whether the govt is aware of frequent changes in export policy for grapes, onions, and pomegranates and its impact on farmers and exporters. Goyal added that the export policy on grapes and pomegranates has not been subject to frequent changes.
To ensure availability of onions for domestic consumers at reasonable prices, the govt had placed restrictions on exports till the supply situation eased, stated Goyal.
On August 19, 2023, the Centre had first imposed a 40% export duty on onions after the average wholesale onion prices started increasing due to the short supply. Thereafter, on Nov 23 last year, the Centre introduced minimum export price (MEP) of USD 800 per tonne on onions. On Dec 7 last year, the Centre had banned onion export effective till May 3 this year. On May 4 this year, the Centre had lifted the ban on onion export but levied an MEP of 550 per tonne and also a 40% export duty on onions. On Sept 13, the Centre removed MEP and also reduced export duty on onions from 40% to 20%. Presently, there is still a 20% duty on onion export.
Further, the policy interventions for maintaining domestic availability at reasonable prices are deliberated and decisions taken through a well-established institutional mechanism, with representation from major stakeholders from departments/ministries. The underlying objectives of policy interventions are also to ensure fair prices to farmers and opportunities to exporters when there is an excess of supply over demand.
To increase productivity and output of its scheduled products, including onions, grapes, and pomegranates from across the country, including from Nashik, the Agricultural and Processed Food Products Export Development Authority (APEDA), under the Department of Commerce, provides financial assistance through its financial assistance scheme (FAS). The scheme has components like development of export infrastructure, quality development, and market development, stated Goyal in a written reply.