New Delhi (PTI): In a move aimed at boosting onion shipments, the Centre has decided to cut minimum export price (MEP) of the commodity for the first time in three months by USD 60 to an average USD 320-325 a tonne for February as domestic supply improved with late kharif crop arrivals.
"We have decided to cut the MEP by 60 dollars keeping in mind the availability scenario. The prices, too, are moderating," a senior official with the National Agricultural Cooperative Marketing Federation (Nafed) told PTI.
Nafed is the nodal agency for onion export, which decides the MEP every month in consultation with 12 other agencies, taking into account domestic availability and prices.
Exporters have, however, sought a reduction in the MEP of USD 120-125 a tonne, the official said. India is projected to export a record 15 lakh tonnes of onions this fiscal.
As prices shot up, Nafed raised the MEP by a whopping USD 150 a tonne in phases between November 2008 and January this year to make exports expensive and contain the rise through improved domestic supply.
The scope for a reduction in the MEP arose after late kharif crops started flooding markets, considerably reducing the pressure on prices, he explained.
"About 45,000-60,000 tonnes of fresh onions are coming to markets everyday in Nashik, a major trading centre. Markets in Delhi are witnessing arrivals of about 8,000 tonnes a day, which are higher than arrivals a month ago," he said.
Wholesale prices of onion in the major producing region of Lasalgaon in Maharashtra moderated to Rs 935 per quintal today from Rs 1,080 on January 1. In Delhi, the prices eased to Rs 1,130 a quintal today from Rs 1,310 in the beginning of this month.
Onion MEP (cost and freight) stands at USD 320 a tonne for the 'break bulk' category and USD 325 a tonne in container shipment for destinations like Dubai and Sharjah.
Source : The Hindu