Amidst an extended ban on onion exports, concerns arise as certain shipments to markets like the United Arab Emirates (UAE) allowed by the government have been sold at significantly lower prices than global rates, leading to windfall profits for selected importers.
Export Dynamics and Concerns
- Export Pricing Discrepancy: Indian farmers receive ₹12-₹15 per kg for onions meant for export, whereas these onions are sold in UAE markets for over ₹120 per kg.
- Ban and Exceptions: The ban on onion exports was extended indefinitely in response to concerns about domestic shortage. However, exceptions were made for exports to certain countries upon diplomatic requests.
- Export to UAE: The government permitted the export of 14,400 metric tonnes (MT) of onions to the UAE, with an additional 10,000 MT approved later. These exports are channeled through the National Cooperative Exports Limited (NCEL).
- Procurement and Pricing: Procurement for exports is done through an e-tendering process, but concerns arise as the selling price abroad is considerably lower than international rates.
Export Process and Stakeholders
- Government Role: Exports are facilitated by the government through NCEL on a government-to-government basis. However, the importing entities are private traders and supermarket chains, not government agencies concerned with food security.
- Exporter Concerns: Exporters raise concerns about the discrepancy in prices, urging clarity on the process for permitting exports and setting prices.
- Lack of Transparency: Queries regarding export modalities and stakeholder identification have gone unanswered by concerned ministries. NCEL officials claim that an inter-Ministerial committee determines pricing and stakeholders.
Calls for Clarity and Market-linked Pricing
- Industry Appeal: Horticulture exporters seek clarity on the export process and hint at a possible importer-exporter nexus. They propose linking exports to market prices for countries not associated with food security concerns.
Multiple-Choice Questions (MCQs):
- What is the primary concern raised by farmers and traders regarding onion exports?
A) High export tariffs
B) Low selling price abroad compared to domestic procurement
C) Excessive packaging costs
D) Limited access to export markets
Answer: B) Low selling price abroad compared to domestic procurement - How did the government handle the ban on onion exports?
A) Lifted the ban entirely
B) Extended the ban indefinitely
C) Provided subsidies for exports
D) Restricted exports to specific countries
Answer: B) Extended the ban indefinitely - Through which entity are onion exports to the UAE facilitated?
A) National Agricultural Cooperative Marketing Federation of India (NAFED)
B) Agricultural and Processed Food Products Export Development Authority (APEDA)
C) National Cooperative Exports Limited (NCEL)
D) Indian Council of Agricultural Research (ICAR)
Answer: C) National Cooperative Exports Limited (NCEL) - What is the suggested solution proposed by horticulture exporters to address pricing concerns?
A) Increase government subsidies
B) Implement stricter export regulations
C) Link exports to market prices
D) Establish a government-controlled monopoly on exports
Answer: C) Link exports to market prices