INDIA – The government’s recent clarification extends the window for onion exports until November 30 for consignments already processed by customs before October 29.

This announcement comes from the Directorate General of Foreign Trade (DGFT), directed towards onions that had been handed over to customs authorities.

“Onion consignments handed over to customs authorities and registered in their systems before October 29 can be exported until November 30 this year,” stated DGFT.

However, the notification emphasized that the export duty paid before this announcement would not be subject to refunds.

Previously, on October 28, the government had implemented a minimum export price (MEP) of USD 800 per ton, effective from October 29 until December 31, 2023. This move aims to stabilize local market prices while ensuring adequate onion availability domestically.

The extension provides a grace period for onion consignments already in the export pipeline, offering exporters additional time to manage shipments and meet the revised regulatory requirements.

Meanwhile, from a local scope, onion prices come down in wholesale markets, but retailers in Bengaluru continue to sell at higher prices.

After reaching INR100 (USD 1.20) per kg, onion prices in Bengaluru’s wholesale markets have now declined to INR30-40 (USD 0.36 – 0.48) per kg near the Agricultural Produce and Livestock Market Committee (APMC) in Yeshwantpur.

Despite this, retail prices fluctuate between INR60 to INR80 per kg (USD 0.72 – 0.96). With fresh stocks arriving from other states, traders note an alleviation in supply constraints.

Ravi Shankar, an onion merchant and secretary of the Onion Merchants’ Association of Bengaluru, attributed the price reduction to increased yields, particularly in regions with better irrigation facilities. Wholesale prices have significantly dropped from INR2,500 (USD 30.00) for 50kg to INR1,700 (USD 20.40).

In the bustling K.R. Market, onion prices vary, with traders quoting three kilos at INR100 or two kilos at INR50, depending on size and quality.

While supply remains abundant in recent weeks, retail and online markets still maintain prices between INR60 to INR80 per kg (USD 0.72 – 0.96).

India ranks among the world’s largest onion producers, with Maharashtra leading production at 42.53%, followed by Madhya Pradesh at 15.16% in 2021-22.

The country exported over 15 lakh metric tons worth INR 2,826.50 (USD 33.89) crores during 2020-21. In 2022-23, India saw a substantial 64% surge in onion exports, reaching a six-year high of 25.25 lakh tons, driven by heightened overseas demand and increased supplies.

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