The export of onion to Bangladesh has been reduced following the Government’s decision to raise the minimum export price (MEP) of the crop to $650 per tonne. In order to reduce shipment and control the escalating prices, last week the Commerce Ministry had raised the MEP sharply from $450 per tonne. Bangladesh is now turning to Myanmar, Pakistan and China to make up for the supply shortage.
However, exporters are not complaining this move, as they think the step is justified in view of the rising domestic demand. Earlier, Bangladesh had banned export of hilsa fish to India citing the same reason.
The government bans the export of onions every year when the prices cross Rs 30 per kg. But this time, due to the serious crisis of the dollar, they have not banned exports totally, but fixed the floor price. Onion prices have gone up to Rs60-70 in West Bengal. In national capital New Delhi, it had soared to Rs 80.
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