Minimum Export Price of Onion Raised by $150 Per Tonne to Increase Domestic Supply
The Minimum Export Price [MEP] of onion has been increased today by $ 150 per tonne to restrict exports, thereby augmenting the domestic supply. The increase is for all destinations across the board. With this rise, the MEP for Gulf countries stands at $ 525 per tonne for export during the remaining part of November 2010 as compared to $ 375 per tonne earlier.
Export of onion is regulated through the mechanism of Minimum Export Price, which is fixed by Nafed in consultation with other State Trading Enterprises and leading associate shippers.
This action was taken by Nafed after MEP meeting held today to review the sudden price rise in the domestic market and also to decide upon the requirement of increasing MEP of onion. This meeting was held under the Chairmanship of Sh. Sanjeev Chopra, MD, Nafed and was participated by Sh. CB Holker, Director Nafed through video conferencing from Nashik and also senior officials of Nafed, NCCF and NHRDF. Nafed is one of State Trading Enterprises and also the monitoring agency for export of onion.
Nafed is also starting retailing of onion at reasonable price from its outlets in Delhi to provide succor to consumers. In addition, Nafed is initiating procurement of onion in bulk quantities from mandies of Western India so as to lift maximum quantity of FAQ grade onion arriving in the market.
All these efforts are likely to have positive impact on the price line of onion till the arrival starts from late kharif season.
The wholesale prices of onion in important growing pockets of Maharashtra and also in the most important terminal market of fruits & vegetables at Azadpur in New Delhi have recently shown buoyant trends. The wholesale prices in Lasalgaon, Pimpalgaon and Manmad mandies of Maharashtra are presently ruling between Rs. 1300 to Rs. 3200 (approx modal rate of Rs.2038/qtl) with total arrivals of 18000 MT. During the corresponding period last year, the prices in the above mandies were ruling in the price range of Rs. 261 to Rs.2751/qtl with a modal rate of Rs. 1348/qtl with arrivals of 43000 qtls. Similarly, prices of onion in Azadpur market are presently ruling in the price range of Rs.1500 to Rs.2250/qtl with a modal rate of Rs.1685/qtl with total arrivals of 16600 qtls against last year prices of Rs.1375 to Rs.1625/qtl with modal rate of Rs.1475 /qtl with arrivals of 14500 qtls.
The current increase in price is largely attributed to Kharif crop of onion getting affected owing to rains in AP and Karntaka and also due to rains in Nashik area of Mahrasthrta. According to the NHRDF and trade reports, the production of Kharif onion in Maharashtra is also reported to have suffered setback due to this. Another factor which is seen to be instrumental in giving impetus to the price trend is that the stock of stored onion from the last Rabi has also been exhausted and mandies were closed due to Diwali in the first week of Nov 2010. However, this ephemeral spurt in the prices of onion is expected to ease out by the second week of Dec 2010 when arrivals of onion from late Kharif season in Maharashtra may start, which will considerably augment the supplies to match the demand.
MP/SB