India may export 7,500 tonnes ofonions to Qatar, says report

Indian business daily Mint reports that the Ministry of External Affairs (MEA) requested for some relaxation in the export ban

NT Bureau
Doha

India is planning to export 14,000 tonnes of non-basmati rice to Mauritius, and 7,500 tonnes of onions to Qatar through National Cooperative Exports Ltd. (NCEL), after the ministry of external affairs (MEA) requested for some relaxation in the export ban, Indian business daily Mint has reported, quoting a senior official.

“The government-to-government export comes against the backdrop of an export ban since last July, and the government lifting ban on onion exports but slapping a $550 per tonne minimum export price (MEP) and 40% export duty on onions earlier this month. These exports to India’s strategic partner countries come amid the government’s efforts to keep domestic prices in check amid shortfall in the production,” the report said.

“We received a request from MEA for export of non-basmati rice and onion to Mauritius and Qatar,” the official said, who did not wish to be identified.

“Although it recommended 24,000 tonnes of non-basmati rice to supply to Mauritius and 15,000 tonnes of onions over the next two months to Qatar, the committee decided to export 14,000 tonnes of non-basmati rice to Mauritius, and 7,500 tonnes of onions to Qatar through NCEL. A final call will, however, be taken by the top authorities,” the official added, according to the report.

India has been supplying rice and onions to its key strategic countries at the government-to-government level since it imposed a ban on exports of non-basmati white rice last July and onions last December amid concerns over food inflation due to poor crop prospects.

India lifted the ban on exports of the politically sensitive commodity on 4 May but imposed an MEP of $550 per tonne and 40% export tariff ahead of key onion growing and consuming regions of Maharashtra going into the Lok Sabha polls.

According to Mint, the decision was made after thorough consultation with stakeholders, and assessing the supply, crop and prices situation.

“During Rabi, or winter, onion output that was estimated to be lower than the previous season could be higher at 19.1 million tonnes, sufficient to meet the monthly domestic demand of 1.7 million tonnes, it was estimated,” the report adds.

After the ban, the Indian government allowed exports of 99,150 tonnes of onions to six neighbouring countries – Bangladesh, the UAE, Bhutan, Bahrain, Mauritius and Sri Lanka – through its export body NCEL.
Onion prices remain high in Qatar due to a shortage of supplies.

“A kilo of onion is selling today for QR6 and two weeks ago the price was QR7.50. The high prices have also affected sales as many customers are buying lesser quantities,” a grocery store owner told News Trail, requesting anonymity.