Onion exports fell 18% to 4.86 lakh tonnes during first half of the fiscal

Onion exports stood at 4,85,930.51 tonnes during April- September period of the current 2015-16 fiscal, lower by 18%, compared to 5,89,900.89 tonnes in the corresponding period of the previous year, according to data compiled by National Horticultural Research and Development Foundation (NHRDF). This drop in exports can be attributed to government hiking the Minimum Export Price (MEP) to $700 per tonne in August this year.

The government has now scrapped the onion MEP to push outward bound shipments as domestic prices have crashed and are ruling at low levels. The government had hiked onion MEP from $425 to $700 this year in August as prices skyrocketed on lower output due to unseasonal rains.

The production of onion is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes a year ago. Maharashtra, Karnataka and Madhya Pradesh are the top three onion-producing states in the country