Last Updated :
31 December 2007 at 18:30 IST
Onion prices likely to remain low next year
Commodity Online NEW DELHI: No more tears while buying onions as the edible bulb prices are softening the domestic market as well as overseas market.
National Agricultural Cooperative Marketing Federation of India Limited (NAFED) recently reduced the Minimum Export Price of the commodity by 50 dollars per tone for most of the market in order to boost the overseas sale.
Currently the average MEP stands at 200 dollar per tonne to countries like Singapore, UAE and others, the official said.
Meanwhile, the reduction of export price for Bangladesh was by 100 dollar per tonne. The MEP for Bangladesh stands at 250 dollars a tonne against 350 dollar per tonne earlier.
NAFED, along with 12 other agencies, issues no-objection certificate for onion exports and also fixes MEP every month for various overseas destinations. The MEP was drastically reduced by 175 dollars a tonne for December shipment.
The MEP was reduced as onion prices (Nasik varieties) fell to Rs 200-430 per quintal today from Rs 700 per quintal on November 30 due to increased supply, the official said.
The official added that the MEP cut would help the country in competing with other countries like China in the export.
However, the domestic rates of the commodity would remain stable because of the increasing demand, he said.
Traders said farmers have no option but to bring onion to the markets as Kharif bulb contains high moisture and therefore, cannot be stored for a longer time.
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