Onions worth lakhs of rupees pile up at ports and borders awaiting a system update

The Vice President of Horticulture Produce Exporters’ Association said that if the issue was not resolved within a few hours, 35 containers that were slated to reach Tuticorin port in Tamil Nadu early on Tuesday (September 17, 2024) morning, would also be delayed
| Photo Credit: The Hindu

Three days after the Union government slashed the export duty on onions from 40% to 20%, onions worth lakhs of rupees are stuck at India’s borders and ports, awaiting an update for the system, as a result of which farmers and traders have not yet been able to benefit from the export duty slash.

Around 380 containers are stuck at various ports of the country, including the Jawaharlal Nehru Port Authority (JNPA) in Navi Mumbai, while 90 lorries wait at two checkpoints on the border with Bangladesh, an official of the Horticulture Produce Exporters’ Association (HPEA) said. Each container carries about 30 tonnes of cargo, and each lorry carries about 25 to 30 tonnes.

“There is a technical issue in the Customs’ portal. There are two serial numbers on the portal for onions. But the portal does not process the order. We are unable to avail the 20% export duty. We can’t even send the onions with 40% customs duty. Our onions have been stuck for the last three days. Now we fear they will start rotting,” Vikas Singh, vice president, HPEA told The Hindu.

“Our containers are stuck everywhere. Tomorrow (Wednesday) morning, almost 60 containers are planned to be sent to Malaysia and Singapore. The vessel has been booked. But if the containers are not cleared in the system, the vessel will leave [without] these containers,” he said.

“Almost 300 containers are stuck at the JNPA since Friday evening. Nothing could be loaded due to lack of clearance. Fifty containers await clearance at the dry port of Janori in Nasik; 60 lorries have been waiting at Goja Danga check point on the Bangladesh border; and 30 lorries are at Mehndipur check point, also on the Bangladesh border,” Mr. Singh said.

He added that if the issue was not resolved within a few hours, 35 containers that were slated to reach Tuticorin port in Tamil Nadu early on Tuesday (September 17, 2024) morning, would also be delayed. “Tuticorin is the sub-port for Sri Lanka. The vessel, which has already been booked, will arrive on Wednesday. So those 35 containers will need to be cleared on Tuesday,” Mr. Singh said.

The HPEA is the only recognised association for exporters of onion, garlic, and horticulture, Mr. Singh said. “We have updated this [issue] to the Consumer Affairs Ministry, and to the Agriculture Ministry,” he added.

An onion trader who did not wish to be named rued the restrictions. “When the government imposes restrictions, the implementation is immediate. But while opening the system, why is there so much of delay? Each container is worth approximately ₹21 lakh. Today (Monday) is the third day and we are still suffering. On one hand, China is becoming very aggressive with respect to onions. And here, we face so many restrictions,” he said.

Sources in the Customs Department said there was a “system issue” that was being resolved. “Everything is being monitored. The communication has been sent to the concerned persons. It will be resolved soon,” a source said.