India exported a record $523 million worth of onion in the first three quarters of the current fiscal (2022-23), which is 16% more than the same period previous fiscal, according to a statement by the ministry of commerce and industry on Sunday.

Exporters say adequate domestic supplies because of bumper production and robust global demand have pushed up onion shipment this fiscal so far.

Since the beginning of 2021, the government has not imposed a ban on onion exports which was the norm till a few years back.

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“The extant export policy of onions is free and only the export of onion seed is ‘restricted’ and that too is permitted under authorisation from DGFT,” the commerce ministry has stated.

India exported 1.5 million tonne (MT) of onion valued at $460 million in 2021-22. Bangladesh (37%), Malaysia (14%), Sri Lanka (12%) and Nepal (8%) respectively received most of the onions exported in the last fiscal.

Onion retail inflation declined by 19.98% on year in January 2023. Negative onion inflation last month was due to a bumper output of 31.12 MT in the 2021-22 crop year, against 26.64 MT in 2020-21.

Maharashtra, Madhya Pradesh, Karnataka and Gujarat have more than 60% share in the country’s onion production.

The modal retail prices of onion as per the department of consumer affairs on Saturday was `20/kg against `40/kg a year back. In December 2019, onion retail prices touched `100 a kg in many cities which resulted in ban on onion exports by the government.

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Rabi onion harvested during April-June accounts for around 65% of the country’s onion production and meets the consumers’ demand till the kharif crop is harvested from October-November. Kharif harvested onions are not stored because of higher moisture content thus entering the market directly.

To address the post-harvest losses of onions, including losses incurred from inefficient storage and processing, the department of consumer affairs has announced a grand challenge for the development of ‘technologies for primary processing, storage and valorisation of onions.’

India is the second biggest onion producing country in the world after China.