Govt hikes onion minimum export price to $700/tonne
23 Aug 2015 4:20 AM IST
The Government on Saturday hiked the minimum export price (MEP) of onions sharply by $275 per tonne to curb shipments and boost domestic supply in order to control spiraling retail prices which have touched up to Rs 80 per kg. The decision to increase the onion minimum export price to $700 per tonne from $425 per tonne has been taken as prices of onions at both wholesale and retail levels have been rising on lower output due to unseasonal rains earlier.
“To increase availability in the domestic market, it has been decided to raise <g data-gr-id="90">minimum</g> export price of onions further to $700 per tonne,” said the Consumer Affairs Ministry in a statement. The Government is keeping a close watch on onion prices and has floated a tender for import of 10,000 tonnes of onions, which will be opened on August 27, it added. The minimum export price is the rate below which no exports are allowed. The rise in minimum export price restricts exports and improves domestic supply.
Onion prices have risen unabated in the past few weeks. The export price was last raised to $425 per tonne from $250 on June 26, it added. The Consumer Affairs Secretary will on August 24 take stock of the situation with agencies the Small Farmers’ Agribusiness Consortium (SFAC), National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), MMTC and the Delhi government.
“Prices of onions have been rising on account of a decline in total production from 189.23 lakh tonnes in 2014-15 as against 194.02 lakh tonnes in 2013-14, ie a decrease of 4.79 lakh tonnes,” the statement said. Onion exports fell to 10.86 lakh tonnes in 2014-15 from 13.58 lakh tonnes in the previous year.
The shortfall has primarily been on account of adverse weather conditions, including unseasonal rains which have impacted both the standing and harvested crop at major producing centres, it added.
Intervening in the market, the Small Farmers Agribusiness Consortium and National Agricultural Cooperative Marketing Federation of India Ltd, which have procured 8,368 tonnes of onions using the Price Stabilisation Fund (PSF), are supplying onions for sale at subsidised rates at Mother Dairy’s Safal and 120 booths of the Delhi Milk Scheme (DMS).
The Small Farmers Agribusiness Consortium is supplying onions at Rs 30.50 per kg to <g data-gr-id="75">Safal</g>, which is retailing at Rs 39 in Delhi. The Small Farmers Agribusiness Consortium is also selling onions to consumers at Rs 35 through Delhi Milk Scheme booths whereas the Delhi government is selling onions at a cheaper Rs 30. The state governments are also being reminded regularly to keep a tab on the price rise and take effective deterrent action.
Meanwhile, according to a report from Nashik, Maharashtra, pink onions — considered one of the best — on Saturday sold at Rs 6,326 per quintal at the Lasalgaon market, Asia’s largest wholesale onion market. Sources from the Lasalgaon Agriculture Produce Market Committee (APMC) said <g data-gr-id="85">the that</g> onions sold at an average price of Rs 5,700 per quintal at auctions till 1 pm on Saturday as it was a half day.
At Pimpalgaon Baswant APMC in the district, pink onions sold at Rs 6,318 per quintal with an average price of Rs 5,700 per quintal. Prices similarly remained elevated at other APMC markets in the district, the sources added. Onions are being sold in the retail market at Rs 50-55 per kg in Nashik city and surrounding areas. Pink onions can be stocked by traders.
Wholesale prices jump to Rs 57/kg at Asia’s top onion market Lasalgaon
Wholesale onion prices on Saturday rose to Rs 57 per kg at Lasalgaon in Maharashtra, Asia’s biggest onion market, which could further spike retail prices in most parts of the country adding to consumers’ woes. In the price-sensitive Delhi market and some other parts of the country, retail onion prices have already gone up to Rs 80 per kg depending on the quality of the crop.
As per the data maintained by the National Horticultural Research and Development Foundation (NHRDF), the wholesale onion prices at Lasalgaon increased to Rs 57 per kg on Saturday from Rs 55 per kg on Friday. However, Government data maintains that the retail onion price is ruling at Rs 66/kg in the national capital compared with Rs 50 in Mumbai and Rs 52 in Chennai as well as Kolkata.
In spite of several government steps, the prices of the key kitchen staple have risen unabated both in the wholesale and retail markets due to tight supply following shortfall in domestic output. Also, the likely fall in this year’s <g data-gr-id="107">kharif</g> (summer) crop due to deficit rainfall has further added fuel to the price rise. In the national capital, central agency SFAC is procuring 8,000 tonnes under the price stabilisation fund, boosting supply of onion through Mother Dairy and Delhi Milk Scheme booths at subsidised rates.
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