Ban Off, But Heartburn Over Onion Export Price .

PUNE: Onion exporters are in a flap over the minimum export price of $ 475 per tonne announced by the union government. According to them, it is higher than the global prices and hence a deterrent to probable customers. There have been no applications for new licences for onion export after the government lifted the ban.

The Indian onion, largely grown in Maharashtra, has a distinct taste and is sought after. Exporters have decided to seek a reduction in the minimum export price (MEP) to $300 per tonne and will take up the issue with the state and union governments that would keep them in the competition.

A senior exporter from the Bombay Exporters' Association said, "The minimum export price is higher by at least $150 per tonne than the current rates of onion trading.Though the kharif onion is yet to hit the market, the government report says that the crop can be exported as there will be sufficient for domestic need.However, the union government's decision on the MEP is unfriendly." The association, which includes exporters from across the country,deals with facilitation and gives inputs to the government during policy formation. It will be writing to the union commerce secretary, demanding a correction in the minimum export price.

India usually exports onion between March and December, when there is excess crop available in the country.Of the monthly onion export of 1.25 lakh tonne, Maharashtra's share is 80%, said a Maharashtra State Agricultural Marketing Board official. Gujarat, Karnataka and Rajasthan account for the remaining 20% share.

Onion cultivator Uttam Kadam from Nashik said, "Lifting the ban on onion export is a mere eyewash. There is domestic demand, but I must be able to export a part of my stock for better earnings. Fresh onion will start arriving in the market in a few weeks and prices in the domestic market will fall."

Bangladesh,Malaysia, Sri Lanka and Middle East countries are consumers of the Indian onion which faces stiff competition from the variety grown in Pakistan, China and Iran as well.This year, excess production has brought Iran into the international market, competing with Pakistan and China.

The union government invited the wrath of onion cultivators when the empowered group of ministers banned onion exports on September 8.

Farmers from Maharashtra had protested anticipating lower domestic process forcing the state agriculture and marketing minister Radhakrishna Vikhe Patil to take up the issue with the union government.

The ban was lifted on September 20, but the Union government fixed the MEP at $475 per tonne,making Indian onion costlier in the international market.

Source : timesofindia.indiatimes.com