MUMBAI (Commodity Online): India’s domestic onion prices have dropped but it will still be costly outside the country as the government has kept the Minimum Export Price (MEP) high at $475 per ton. .
Onion is one the chief commodity used on daily basis across the country and Maharashtra accounts for 80% of the country’s total production.
The exporters want the onion MEP to be revised downwards to $300 per ton.
The government had decided to impose ban on onions on September 9 as the price had gone up by Rs 10 per kg in less than three months and late arrival of the crop was attributed as the main reason for the price rise.
"The minimum export price is higher by at least $150 per ton than the current rates of onion trading. Though the kharif onion is yet to hit the market, the government report says that the crop can be exported as there will be sufficient stocks to meet domestic demand. However, the Union Government's decision on the MEP is unfriendly," according to Bombay Exporters' Association, a Times of India report said.
As the market is possessing ample stock and the exports are down, the fresh crop will arrive in few weeks which would lower the price further down causing loss to the farmers.
The main consumers of the Indian onions are Bangladesh, Malaysia, Sri Lanka and Middle East countries.
