Government’s Strategic Initiative | Curbing Escalating Onion Prices

Government’s Strategic Initiative: Curbing Escalating Onion Prices

To curb onion prices, the government has extended the ban on onion exports until further notice. The Ministry of Commerce issued a notification regarding this matter. Earlier this year, onion exports were banned. On March 22, the Directorate General of Foreign Trade announced in a notification that the ban on onion exports would be considered for extension until March 31, 2024.

The continuous surge in onion prices has begun to distress the general public. According to a recent report, the average price of onions nationwide has surged by approximately 57 percent. Prices that were Rs. 30 per kilogram a year ago have now escalated to Rs. 47 per kilogram. The government has initiated efforts to ensure that the impact of onion price inflation does not burden the common people, sparing them from difficulties. Thus, the government has taken action on this issue.

Government’s Strategy Regarding Onion Prices

The government will procure onions through agencies such as NAFED and NCCF. These agencies procured onions last year and established buffer stocks. When onion prices soared, both agencies sold onions at subsidized rates. To facilitate this, sales centers were set up in various locations within cities.

Export Prohibition on Onions

Currently, there is an export ban to regulate onion prices in the market, effective until March 31, 2024. Recently, the central government imposed an export ban on countries like Bhutan, Bahrain, and Mauritius for onion supply. The government has permitted the export of 64,400 tons of onions to the United Arab Emirates and Bangladesh through the National Cooperative Export Corporation Limited (NCEL). The decision to continue or lift the export ban is expected to be made after March 31.

Government Measures Regarding Onion Prices

Previously, in October 2023, the central government decided to increase the sale of buffer onion stocks at retail markets at a rate of Rs. 25 per kilogram to provide relief to consumers. The government planned to purchase 500,000 tons of onions to prevent price increases. This plan aims to provide relief to onion-producing farmers as well. Purchases of onions were made by agencies such as NAFED and NCCF.

The government has obtained approval for onion exports. National Cooperative Exports Limited has granted permission to Bhutan, Bahrain, and Mauritius to export 4,750 tons of onions. According to a notification from the Directorate General of Foreign Trade, Bhutan has been granted permission to export 550 tons, Bahrain 3,000 tons, and Mauritius 1,200 tons of onions.