Onion export price cut 26%

MEP brought down to $350 a tonne from $475 to lend support to falling domestic prices.

The government has decreased the minimum export price (MEP) of onion by $125 a tonne to $350 a tonne, to boost sagging exports and lend support to falling domestic prices. However, prices of certain southern varieties have been kept at $400 a tonne. Prior to this, a price of $475 was applicable for all varieties. The MEP was raised from $300 to $475 a tonne in early September, when retail prices had touched Rs 25 a kg.

“A review meeting on onion was held yesterday in the commerce ministry. It was agreed that onion MEP needs to be reduced. A decision to this effect has been taken and it will be notified soon,” said Rajeev Gupta, managing director, National Agricultural Cooperative Marketing Federation, a canalising agency for onion exports.

 

Gupta added the month-wise export of onion had been lower for all months of the current financial year, except September. In the period between April and October, the country exported 855,984 tonnes of onion valued at Rs 1,108 crore. The quantity is lower by 17 per cent compared to last year’s corresponding export of 1.38 million tonnes. During the last financial year, 13,40,000 tonnes of onion valued at Rs 2,159 crore were exported. Major export markets for onion are Bangladesh, UAE, Malaysia and Sri Lanka.

According to the National Horticultural Research and Development Foundation, the country is expected to produce 15.13 million tonnes of onion, up four per cent from last year’s 14.56 million tonnes. Of the total annual production, 10-15 per cent is during the normal kharif season and another 30-40 per cent in late kharif. The rest comes from the rabi season.

A little over 15 per cent of the total output is from Maharashtra. Other major producers are Gujarat, Orissa, Karnataka, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Bihar, Punjab and Rajasthan.

“Farmers should also get a remunerative price. If prices crash, farmers will grow less onion next year and prices will shoot up, thereby impacting consumers. A healthy balance is the key,” said Gupta.

According to the price monitoring cell of the department of consumer affairs, the retail price of onion in the capital has decreased from Rs 23 a kg in early September (when MEP was raised) to Rs 21 now. Arrival of the late kharif crop will start next month and could further depress prices.