Traders pressurise govt to reduce minimum export price for onions due to likely glut
Farmers and traders are mounting pressure on the government to reduce the minimum export price for onions as they anticipate a glut in the market after 10 days or so.
By Jayashree Bhosale, ET Bureau | Updated:
PUNE: Farmers and traders are mounting pressure on the government to reduce the minimum export price for onions as they anticipate a glut in the market after 10 days or so. While farmers have taken to the streets, traders are busy lobbying authorities at the Centre and in the state.
"Farmers could not get returns from crops like maize and soyabean due to drought in the state. The kharif crop has no shelf life and with prediction of unseasonal rains, farmers will try to sell it off," said Nanasaheb Patil, chairman of Lasalgaon Agricultural Produce Marketing Committee.
Onion prices in the benchmark Lasalgaon market increased to Rs 16 a kg on Saturday last week from Rs 14 a kg just a day earlier due to drop in arrivals. On Monday, the average wholesale prices as reported by the Maharashtra State Agricultural Marketing Board fell to Rs 11 a kg. "Prices have decreased Rs 15 a kg in the past 15 working days from Rs 26 a kg on Nov 16 to Rs 11 a kg on Dec 7," said Patil.
Following the decline in output, wholesale onion prices in August and September soared almost thrice the prices seen a year ago. Wholesale prices jumped to Rs 41 a kg from Rs 14-16 a kg and retail customers had to pay Rs 80-90 a kg. "Farmers across the country planted more onion due to the good prevailing prices. This can pull down prices to below Rs 10 a kg," said a trader.
"Unless exporters come into the picture, prices can crash. We are not able to export at $700 a tonne," said Ajit Shah, president, Onion Exporters Association. Pakistan, one of India’s key competitors, is exporting onions at $250-300 a tonne. "Any reduction in MEP has to be such that it helps us compete with other countries," said Patil.
"Farmers could not get returns from crops like maize and soyabean due to drought in the state. The kharif crop has no shelf life and with prediction of unseasonal rains, farmers will try to sell it off," said Nanasaheb Patil, chairman of Lasalgaon Agricultural Produce Marketing Committee.
Onion prices in the benchmark Lasalgaon market increased to Rs 16 a kg on Saturday last week from Rs 14 a kg just a day earlier due to drop in arrivals. On Monday, the average wholesale prices as reported by the Maharashtra State Agricultural Marketing Board fell to Rs 11 a kg. "Prices have decreased Rs 15 a kg in the past 15 working days from Rs 26 a kg on Nov 16 to Rs 11 a kg on Dec 7," said Patil.
Following the decline in output, wholesale onion prices in August and September soared almost thrice the prices seen a year ago. Wholesale prices jumped to Rs 41 a kg from Rs 14-16 a kg and retail customers had to pay Rs 80-90 a kg. "Farmers across the country planted more onion due to the good prevailing prices. This can pull down prices to below Rs 10 a kg," said a trader.
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A person alleged that traders in Nashik district had colluded in pulling the prices down. "We have to notice that everything was well till last week. Suddenly, on Monday, prices came down by Rs 500 a quintal," said the person. The Onion Exporters Association has written letters to the Union commerce minister, agriculture minister and state ministers."Unless exporters come into the picture, prices can crash. We are not able to export at $700 a tonne," said Ajit Shah, president, Onion Exporters Association. Pakistan, one of India’s key competitors, is exporting onions at $250-300 a tonne. "Any reduction in MEP has to be such that it helps us compete with other countries," said Patil.
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