Lok Sabha Question No. 1571 (UNSTARRED), answered on 2025-12-09
Subject: Onion Export Restrictions and Farmer Income Loss
Ministry: COMMERCE AND INDUSTRY
Asked by: Adv Gowaal Kagada Padavi, Ms. Praniti Sushilkumar Shinde

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 1571 ANSWERED ON 09/12/2025

## ONION EXPORT RESTRICTIONS AND FARMER INCOME LOSS

## 1571 . MS. PRANITI SUSHILKUMAR SHINDE ADV. GOWAAL KAGADA PADAVI

Will the Minister of COMMERCE AND INDUSTRY ¼okf.kT; ,oa m|ksx ea=h½ be pleased to state:

- (a)  whether the  Government is aware of the occasions when export bans, minimum export prices or duties were imposed on onions and the reasons therefor during the last five years;
- (b) whether any assessment has been made of the income loss suffered by farmers in Nandurbar, Solapur and Sangli due to these restrictions;
- (c) whether the Government proposes a long-term and stable export policy for onions; and
- (d)  if  so,  the  details  thereof  including  any  buffer  stock  or  incentive  mechanism  to ensure price stability and fair farmer remuneration?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT;ea=h ¼Jh ftfru izlkn½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

- (a) Yes, the Government continuously monitors the availability, arrivals, buffer stock position and price trends of onions across the country. Whenever domestic supplies have shown signs of stress, calibrated and temporary trade policy measures-such as Minimum Export Price (MEP), export duties, or temporary export restrictions-have been imposed solely in the public interest.

These measures were necessary to protect consumers, especially low-income households,  during  years  when  adverse  weather  conditions  and  lower  arrivals  led  to sharp  spikes  in  retail  prices.  All  such  measures  were  time-bound,  transparent  and withdrawn immediately once domestic availability stabilised.

At  the  same  time,  the  Government  has  consistently  facilitated  exports  whenever  the domestic  situation  permitted,  thereby  balancing  remunerative  prices  for  farmers  with affordability for consumers. Key export policy interventions for onions during the last few years are available on the websites of DGFT and the Department of Revenue through CBIC.

(b) It may be noted that market prices of agricultural commodities depend on multiple factors,  including  arrivals,  storage  practices,  traders'  behaviour,  quality  variations  and global  price  cycles.  Therefore,  any  attempt  to  attribute  price  movements  in  specific mandis exclusively to export policy actions would not be empirically accurate.

Further,  during  periods  of  price  moderation,  the  Government  has  actively  procured onions  through  NAFED  and  NCCF  to  support  farmers  and  prevent  distress  sales, thereby ensuring remunerative returns.

(c) The Government follows a stable and predictable approach for the onion trade, based on the following pillars:

-  Dynamic Monitoring: Continuous monitoring of acreage, arrivals, wholesale and retail prices.
-  Evidence-Based Policy: Temporary export interventions only during extraordinary circumstances of a domestic price spike.
-  Immediate Reversal: As soon as domestic prices soften, restrictions are lifted to support farmers and exporters.
-  Strengthening Infrastructure: Large investments in storage, irradiation, packhouses and logistics under NHB and other schemes.

This  balanced  framework  ensures  both  price  stability  for  consumers  and  market opportunities for farmers, and has functioned effectively over the last several years.

- (d) The Government has undertaken the following measures:

1. Creation of Onion Buffer: Under the Price Stabilisation Fund (PSF), the Government  annually  creates  a  sizeable  onion  buffer.  NAFED  and  NCCF procure  onions  from  producing  states  at  market-driven  and  farmer-friendly prices.

2. Procurement to Support Farmers: Buffer procurement helps in absorbing excess  supply  during  peak  arrival  season,  preventing  steep  price  crashes, ensuring  farmers  receive  remunerative  prices,  and  guaranteeing  assured offtake when needed.

3. Market Release to Protect Consumers :  The  buffer  is  released  through retail  outlets,  state  governments,  and  e-commerce  platforms  to  moderate retail prices whenever required.

4. Infrastructure Development : The Government is promoting modern onion storage structures, scientific curing, grading and sorting facilities, cold-chain infrastructure,  and  value-addition  units  to  reduce  post-harvest  losses  and increase farmer incomes.

5. Export Facilitation: Whenever  domestic availability is comfortable, exports are  actively  encouraged through improved logistics, GI tagging and branding initiatives, and market access support through APEDA.

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