PUNE: After the slashing of minimum export price (MEP) of onion from $250 to $150 per tonne, the state government has now issued no objection certificate for the export of 3,000 tonne onions.
With the revised MEP, Indian onion is now more competitively priced in the international market. This is likely to result in higher returns, said Sandesh Bajare, authorised officer for onion export at the Maharashtra State Agricultural Marketing Board (MSAMB).
This year, the country is expected to produce 150 lakh tonnes of onion, of which some 50 lakh tonne will be locally consumed. The country exports 15-20 lakh tonne onions and this year the export would increase due to availability. There was pressure mounting on the government to reduce the MEP, which would encourage export.
He said, "The revised MEP was declared on Wednesday evening and within three days no objection certificates for the export of 3,000 tonne onions were cleared by the Board. Out of the total export of onion in the country, 90% export takes place from JNPT port near Mumbai."
The MEP was increased last year to curb the export and check the escalating domestic prices. Higher returns prompted farmers to opt for onion crop, and this year there is more yield than requirement, Bajare said.
In 2010, India exported 11,36,134 tonne onions to east Asian and Asian countries. The following year, domestic prices continued to surge and government put frequent bans on onion export. It resulted into total export remaining around 10,16,981 tonne. This year, the export of onion is expected to be much higher, otherwise the excess onion supply in the market will bring down the prices.
Source : timesofindia.indiatimes.com