Nafed raises onion export price to raise local supply

NEW DELHI: Co operative major National Agricultural Cooperative Marketing Federation (Nafed) has raised the minimum export price (MEP) of onion by $25 a tonne to an average of $305-310 for December ��� a move aimed at containing the domestic prices and increasing the availability of the commodity.

���We have raised the MEP by $25 in sync with the domestic scenario. We are keeping a close vigil and if needed, we may review the MEP in mid-December,��� a senior official associated with Nafed said.

Nafed had earlier raised MEP by $50 a tonne in mid-November to contain the price rise.

The official said fresh onion crops which were supposed to arrive by the end of October got delayed by 15 days putting pressure on stocks.

Wholesale prices of onion in the major producing region of Lasalgaon in Maharashtra moderated to Rs 851 per quintal from Rs 1,021 on November 18, reflecting the impact of the rise in MEP by $50. The recent hike in the minimum support price (MSP) is aimed at further boosting the domestic availability and checking prices, the official said.

Onion MEP cost and freight stands at $305 a tonne for the break bulk category and $310 a tonne in container shipment for destinations like Dubai and Sharjah.

Nafed is the nodal agency for onion export and it decides the MEP every month in consultation with 12 other agencies after taking into account domestic availability and prices. South India mainly exports onion to Sri Lanka, Malaysia and Singapore while the Nasik varieties are sent to all export destinations particularly to the Gulf nations.