Lowering of minimum export price (MEP) for June month and good crop in Maharashtra and Karnataka this season have brightened the prospect of onion export in the next few days.
The huge surplus of onion in the producing centres has forced the government to reduce the minimum export price by nearly $25 a tonne for all major destinations.
The average MEP now stands at $155-160 a tonne C&F (In Container).
With the lower MEP announced by National Agricultural Co-operative Marketing Federation of India (NAFED), onion exporters will have price advantage over its competitors – Pakistan and Sri Lanka, sources said.
Currently, there are no offerings from Pakistan and Sri Lanka. Apart from the regular enquires for Indian onion from Dubai and Malaysia, Philippines is now the new entrant in the market, trade sources said.
?Export demand from Philippines appears to be good. Initially, Philippines may buy 10,000 tonne in the current month as Indian prices are lower compared to other countries. I think the country is expected to buy about 40,000 tonne this year,? Madan Prakash, joint managing director (JMD), EXIM Rajathi India Private Limited, told FE.
The company is a 30-year old company in the business of agro-based products.
?We have had good crop this season, especially in Maharashtra and Karnataka. Crop in Maharashtra may increase by nearly 20% this year. I think onion prices will remain stable in the next few days as inflows from producing centres will continue. After Maharashtra crop, fresh inflow in Karnataka will start,? he said.
Spot prices in Lasalgaon mandi (Maharashra) are hovering around Rs 350-400 per 10 kg and are expected to rule steady at the current levels, a local trader said. Daily average arrivals of onion in Lasalgaon mandi were around 500-600 truckloads this week.