India’s onion exports surged in value terms by over 25% and stood at Rs 2,877 crore in the 2013-14 fiscal. This rise was on back of spurt in unit value realization despite volumes registering tepid growth. The country’s total onion exports had stood at Rs 2,294 crore in the 2012-13 fiscal. In volume terms, exports fell by 25.46% to 13.58 lakh tonnes (LT) during the FY 2013-14 as against 18.22 LT in the previous year.
The unit value realization improved by 68% to Rs 21,183 per tonne from Rs 12,590 per tonne in the review period, according to data compiled by NAFED. Since December 2013, the shipments of onion picked up after the government lowered the minimum export price (MEP) to $150 a tonne from $350 a tonne.
The government had imposed MEP on onion in September 2013 after which it was raised several times to curb exports and boost domestic supplies. The government took this step as retail prices had shot up as high as Rs 100 per kg in many parts of the country. The government had to even import onion to control price rise. The centre had later done away with the MEP to boost exports in the midst of improved domestic supplies and crash in wholesale rates.
India’s onion production is estimated to be higher by 13% at 189.8 LT in the 2013-14 crop year (July-June), from Rs 168 LT a year ago.