Dec onion exports double to 1.33 lakh tonnes on MEP cut
8 Jan 2014 1:25 AM GMT
Exports of onions stood at 66,236 tonnes during November, 2013, according to data compiled by the National Horticultural Research and Development Foundation (NHRDF).
During the last month, the government had slashed onion MEP three times in order to boost exports and check the sliding domestic prices of edible bulb that led to farmers protest in producing states. On 26 December, onion MEP, which is the benchmark price below which the commodity cannot be exported, was reduced to $150 a tonne from $350 a tonne. Before that, MEP was reduced to $350 per tonne from $800 a tonne on 19 December, while it was cut to $800 a tonne from $1,150 on 16 December.
As per NHRDF data, onion exports jumped more than two-fold to 1,33,290 tonnes in December as against 66,236 tonnes in the previous month. However, exports were lower than December 2012 that saw shipments of 1,37,956 tonnes. During April-December period of 2013-14, onion exports have declined by 30 per cent to 9.87 lakh tonnes as compared with 14.04 lakh tonnes in the corresponding period of previous financial year. India exported 18.22 lakh tonnes of onions in the entire 2012-13 fiscal.
The government had imposed MEP on onion in September and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in major parts of the country. The country had to even import onion to control price rise. With improved domestic supplies and crash in wholesale rates, the Centre has now reduced the MEP sharply to boost exports and stabilise the domestic prices. Wholesale rates in Lasalgaon mandi in Nashik have risen to Rs 11.25 per kg from around Rs 10 per kg last month.
During the last month, the government had slashed onion MEP three times in order to boost exports and check the sliding domestic prices of edible bulb that led to farmers protest in producing states. On 26 December, onion MEP, which is the benchmark price below which the commodity cannot be exported, was reduced to $150 a tonne from $350 a tonne. Before that, MEP was reduced to $350 per tonne from $800 a tonne on 19 December, while it was cut to $800 a tonne from $1,150 on 16 December.
As per NHRDF data, onion exports jumped more than two-fold to 1,33,290 tonnes in December as against 66,236 tonnes in the previous month. However, exports were lower than December 2012 that saw shipments of 1,37,956 tonnes. During April-December period of 2013-14, onion exports have declined by 30 per cent to 9.87 lakh tonnes as compared with 14.04 lakh tonnes in the corresponding period of previous financial year. India exported 18.22 lakh tonnes of onions in the entire 2012-13 fiscal.
The government had imposed MEP on onion in September and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in major parts of the country. The country had to even import onion to control price rise. With improved domestic supplies and crash in wholesale rates, the Centre has now reduced the MEP sharply to boost exports and stabilise the domestic prices. Wholesale rates in Lasalgaon mandi in Nashik have risen to Rs 11.25 per kg from around Rs 10 per kg last month.
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