Onion MEP hiked by Rs 840/tn

The government has increased the minimum export price (MEP) of onion by $20 (around Rs 840) a tonne to $255 (around Rs 10,710) from August 1 to restrict exports and contain domestic prices. Onion MEP has been hiked thrice since July 1. The MEP was hiked in two phases - by $25 and $50 a tonne this month.

The market price of onion has been rising owing to the delayed monsoon in Maharashtra, Andhra Pradesh and Gujarat, which may affect kharif onion crop to be harvested October onwards. The Kharif season accounts for 40 per cent of the total onion output while the rest is grown in the Rabi season.

 

The wholesale price in the Delhi mandi has risen about 40 per cent to Rs 600 - 900 a quintal since July while the retail price has moved up by 25 per cent to Rs 12 a kg.

“There has been a psychological impact on the domestic onion prices since the sowing of the kharif crop got delayed in Maharashtra, Gujarat and Andhra Pradesh (the main onion growing states) due to late monsoons. We are keeping a close watch on domestic prices and may revise the MEP further,” said an official at the National Agricultural Cooperative Marketing Federation, the agency that revises MEP on a monthly basis.

He, however, added that the country has onion stocks of about 2 million tonnes and it would suffice for 3-4 months.

The country has exported 535,000 tonnes of onion in the April-July period this year, up 72 per cent from the 311,000 tonnes exported in the corresponding quarter last year.

“Sowing has got delayed but it is picking up in most growing states except Karnataka. The delay may result in a 15-20 days delay in harvest while crop could be marginally affected”, said R P Gupta, director, National Horticultural Research and Development Foundation (NHRDF)

According to the NHRDF, onion output for 2007-08 is estimated at 7.45 million tonnes, up nearly 12 per cent from previous year’s 6.66 million tonnes.