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  3. Onion exports rises 59% in April-December period

Onion exports rises 59% in April-December period

23 Jan 2014 Evaluate

The exports of onion in value terms has gone up by 59% during April-December period of 2013-14 and stood at Rs 2,532 crore compared to Rs 1,590.79 crore recorded during the same period in 2012-13 fiscal, as per data compiled by National Horticultural Research Development Foundation (NHRDF). The higher exports of onion during April-December period of current fiscal was on account of higher export price fixed by the government. The country had exported onions worth Rs 2,294.90 crore in the entire 2012-13 fiscal.

However, during April-December period of 2013-14, in quantity terms onion exports declined by 30% and stood at 9.87 lakh tonnes as compared with 14.04 lakh tonnes in the corresponding period of previous financial year. In the entire 2012-13 fiscal, the country exported 18.22 lakh tonnes of onions.

In order to curb exports and boost domestic supplies the government had imposed Minimum Export Price (MEP) on onion in month of September and then it was raised several times. The government had taken this step as retail prices had shot up as high as Rs 100 a kg in major parts of the country. The country had to even import onion to control price rise.

The centre has now reduced the MEP sharply to boost exports and stabilize the domestic prices since there is an improved domestic supply and fall in wholesale rates. Onion MEP, which is the benchmark price below which the commodity cannot be exported, was reduced to $150 a tonne from $ 350 a tonne, on December 26. Before that, MEP was reduced to $350 per tonne from $800 a tonne on December 19, while it was cut to $800 a tonne from $1,150 on December 16.

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