Desk Report: National Cooperative Export Limited (NCEL), the export agency of the central government of India, is buying 1,650 tons of onion from the country’s farmers to send to Bangladesh. This onion will be sent to Bangladesh at the rate of 29 rupees (38 taka 40 paisa in Bangladeshi taka) per kg.
To maintain stability in the domestic market, the Indian central government had imposed a three-month ban on onion exports from the country in December.
A notification issued by the Ministry of Commerce at the beginning of December stated that onion exports would be suspended from December 8, 2023, to March 31.
However, on a diplomatic level, the Indian central government has decided to export a total of 64,400 tons of onions, including 1,650 tons to Bangladesh, following multiple requests from several countries, including Bangladesh. This decision was taken last week by the Ministry.
Officials from the Indian government have stated that local farmers have already started selling onions. Onions will be exported to other countries, including Bangladesh, soon.
Regarding the ban on exports, officials from the Indian government have stated that despite the ban imposed on December 8, nearly 50% of the onions available in the domestic market have been sent abroad through illegal means.
There is doubt about the accuracy of these allegations. This is because in the state known as the ‘onion capital’ Maharashtra, the wholesale price of onions is set at a minimum of Rs 7 to a maximum of Rs 16 per kg. In the internal market of India, onion prices are fluctuating between Rs 10 and Rs 20 per kg.
In the domestic market of Bangladesh, onions are currently being sold at retail prices ranging from Tk 50 to Tk 70 per kg. However, just a few days ago, this price had touched Tk 120 per kg.