Traders rue underpriced onion exports to UAE

Amid the extended ban on onion exports, farmers and traders express frustration over shipments allowed to the UAE being sold at low prices, despite high global prices. An Indian farmer receives only ₹12 to ₹15 per kg for onions procured for export, while they are retailed in the UAE for over ₹120 per kg. The export ban, imposed in December to avoid domestic shortages, has exceptions for diplomatic requests, recently allowing an additional 10,000 tonnes for the UAE. Global onion prices have soared to as high as $1500 a tonne, yet India’s shipments were sent at about $500 to $550 a tonne. The exclusive channel for these exports is the National Cooperative Exports Limited (NCEL), with procurements made through an e-tendering process on the Agribazaar portal. Concerns have been raised about the export pricing process and the identification of importers, which reportedly include private traders and supermarket chains, not government bodies. The Horticulture Produce Exporters’ Association seeks clarity on these processes, highlighting discrepancies between the prices at which onions are sold abroad and higher international rates.

Key points:

• Farmers and traders are discontent with low prices received for onion exports to the UAE amidst high global prices.

• Government permitted exports to the UAE, with recent approvals exceeding regular quotas.

• Discrepancies between procurement and retail prices have raised concerns over the fairness of the export process managed by NCEL.

• Calls for transparency in the export pricing process and the selection of importers.

Additional insights:

The situation highlights the complexities of managing agricultural exports amid domestic supply concerns and the potential for significant profits for selected importers at the expense of local farmers. The government's role and the criteria for selecting importers and setting export prices are under scrutiny, pointing to a need for greater transparency and fairness in handling such sensitive trade matters.

Keywords explained:

• National Cooperative Exports Limited (NCEL): A government-owned body responsible for handling certain agricultural exports.

• E-tendering process: An online system for conducting tendering activities, allowing for transparent and competitive bidding.

• Horticulture Produce Exporters’ Association: An association representing the interests of exporters of horticultural products, advocating for their concerns and seeking clarity on export-related policies.

Published in : The Hindu

Date appeared in newspaper : 08 April 2024

Link to the article (might require a paid subscription) : https://www.thehindu.com/todays-paper/2024-04-08/th_international/articleGLFCL30RL-6390463.ece

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