(MENAFN- KNN India) New Delhi, Apr 8 (KNN) Farmers and traders in India are unhappy with the pricing of onion exports to the United Arab Emirates (UAE) amid an extended ban on onion exports fr0m India.
While global onion prices have soared, reaching up to USD 1500 per tonne in the UAE, Indian farmers are being paid a meager Rs 12 to ₹15 per kg for onions procured for export to the UAE.
The Indian government had imposed a ban on onion exports in December 2022 due to fears of domestic shortage. However, it allowed exports to certain countries, including the UAE, in response to diplomatic requests.
Recently, the government permitted the export of 14,400 metric tonnes (MT) of onions to the UAE, with an additional 10,000 MT quota over and above the quarterly cap of 3,600 MT.
Exporters allege that these exports are being channeled exclusively through the National Cooperative Exports Limited (NCEL), a government-owned body under the Ministry of Cooperation.
They claim that while Indian farmers are being paid low prices, the same onions are being sold in UAE stores for more than ₹120 per kg, resulting in windfall profits for selected UAE importers.
The Horticulture Produce Exporters' Association has raised concerns about the process for permitting exports and setting the price for shipments.
They have sought clarity fr0m the government on the modalities for determining the export price and identifying the exporters and importers under this window.
Critics argue that an importer-exporter nexus may be at work, and they have proposed that exports through the NCEL to countries whose needs are not linked to food security should be linked to market prices.
(KNN Bureau)
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