Last Updated :
03 June 2008 at 18:45 IST
Govt cuts onion export restrictions to back farmers
Commodity Online NEW DELHI: The government has decided to ease the minimum export price (MEP) of onion to encourage export in the wake of excess in production of the commodity.
NAFED official said that the excess in production of onion has compelled the government to relax export restrictions in order to help farmers to get a good price for their commodity. The new rates are applicable for the June shipments, he added.
The cooperative major NAFED is the nodal agency for export of onion and it decides the MEP every month taking into account the domestic availability and prices.
The average MEP now stands at USD 155-160 a tonne. The MEP has been slashed as there is huge availability of onion in the country and the price realisation by farmers is low, the official said.
After the revision, the onion MEP (Cost & Freight) now stands at USD 155 a tonne for 'break bulk' category and USD 160 a tonne in container shipment for destinations like Dubai and Sharjah.
Onion from India's southern states is exported mainly to Sri Lanka, Malaysia and Singapore, while the Nasik varieties are sent to all export destinations, particularly to the Gulf countries.
Onion farmers in the major growing centres of Lasalgaon and Pimpalgaon in Maharashtra have been receiving less than Rs 1.50 per kg for the last two months compared to Rs 2.50 a kg in last week of March this year, traders said.
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