Indian onions are turning out to be more expensive than onions from Pakistan or China in international markets, thanks to the decision taken...
Indian onions are turning out to be more expensive than onions from Pakistan or China in international markets, thanks to the decision taken by the Centre to increase the minimum export price (MEP) by $175 per tonne taking the total price to $525 per tonne.
In contrast, onions from Pakistan cost around $350 per tonne and this could hurt Indian exports, say top officials from Agriculture Produce Market Committee at Lasalgaon, the country’s biggest wholesale market for onion.
Already, the country has registered its lowest export of onion in the past nine years during 2014-15. The decline has been as much as 20% as compared to the previous year.
There is a $100 per tonne difference between onions from India and other international markets, says Ajit Bhandari, an onion exporter from Nashik. “The pace of export has been less and now this move is going to hit exports harder,” he said.
NItin Jain, another exporter echoes a similar view and says exports will be further reduced from India.
Nanasaheb Patil, chairman, Lasalgaon APMC and a member of Nafed, says in the last 15 days, prices of onions have reduced by R300 per tonne. At a time when the MEP should be reduced so that exports can pick up the government has gone ahead and increased the MEP. There seems to be no logic behind this move, he pointed out.