Export price floor of onion may slip on fresh arrivals
Onion prices are slowly coming down in domestic markets due to fresh arrivals. As a result of improved supplies, canalising agencies are thinking of lowering the minimum export prices (MEP).
By NIDHI SHARMA, TNN |
MUMBAI: Onion prices are slowly coming down in domestic markets due to fresh arrivals. As a result of improved supplies, canalising agencies are thinking of lowering the minimum export prices (MEP).
The MEP is fixed by NAFED with 12 other designated canalising agencies and onion exporters. MEP was revised up by $50/tonne in the last week of September, when onion prices were soaring, in order to restrict the exports. A meeting is scheduled at the end of this month.
Wholesale prices of Onions in Mumbai are down to Rs 12-14 per kg from Rs 18-19 about ten days ago, while the prices in Azadpur mandi of Delhi have come down to Rs 15-17 .50 from Rs 18. Onion prices in Lasalgaon are also down to Rs 12-13 per kg. According to onion traders, prices are expected to further go down after Diwali to Rs 10-Rs 12 as arrivals will be in full form by that time.
NAFED managing director Alok Ranjan told ET that if onion prices continue to go down over a period, then the MEP can be reviewed downwards. The last time round, MEP was increased by $50 from $445 per tonne to $495 per tonne.
The government brought onions from the Open General Licence (OGL) to the restricted list to discourage exports and Mr Ranjan feels that this decision may be reviewed looking over a period. Under the restricted list, exporters has to first get an export licence from DGFT followed by an NOC from the canalising agency, before exporting a commodity.
Not surprisingly, onion traders and exporters also feel that government should review the export prices failing which prices will crash in the domestic markets to Rs 6 to Rs 7 per kg.
Prices are easing as second crop arrivals has started from Nasik and Pune in Maharashtra, Karnataka and also Rajasthan from October 20 onwards, said a Maharashtra-based onion trader.
The Delhi Azadpur mandi Onion Potato Merchant’s Association president Trilokchand Sharma said prices at Azadpur have come down to Rs 500-Rs 650 per 40 kg from the earlier Rs 600-750 per 40 kg. “Onion prices will further go down as arrivals from Rajasthan will increase which will also reduce the arrivals from Maharashtra,” Mr Sharma said.
In August, the MEP was hiked by $120 a tonne in two phases to curtail the exports. Onion exports from India between April-September 2007 were down by approximately 50% at 3.82 lakh tonnes as against 6.05 lakh tonnes in the corresponding period last year.
The MEP is fixed by NAFED with 12 other designated canalising agencies and onion exporters. MEP was revised up by $50/tonne in the last week of September, when onion prices were soaring, in order to restrict the exports. A meeting is scheduled at the end of this month.
Wholesale prices of Onions in Mumbai are down to Rs 12-14 per kg from Rs 18-19 about ten days ago, while the prices in Azadpur mandi of Delhi have come down to Rs 15-17 .50 from Rs 18. Onion prices in Lasalgaon are also down to Rs 12-13 per kg. According to onion traders, prices are expected to further go down after Diwali to Rs 10-Rs 12 as arrivals will be in full form by that time.
NAFED managing director Alok Ranjan told ET that if onion prices continue to go down over a period, then the MEP can be reviewed downwards. The last time round, MEP was increased by $50 from $445 per tonne to $495 per tonne.
The government brought onions from the Open General Licence (OGL) to the restricted list to discourage exports and Mr Ranjan feels that this decision may be reviewed looking over a period. Under the restricted list, exporters has to first get an export licence from DGFT followed by an NOC from the canalising agency, before exporting a commodity.
Not surprisingly, onion traders and exporters also feel that government should review the export prices failing which prices will crash in the domestic markets to Rs 6 to Rs 7 per kg.
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Prices are easing as second crop arrivals has started from Nasik and Pune in Maharashtra, Karnataka and also Rajasthan from October 20 onwards, said a Maharashtra-based onion trader.
The Delhi Azadpur mandi Onion Potato Merchant’s Association president Trilokchand Sharma said prices at Azadpur have come down to Rs 500-Rs 650 per 40 kg from the earlier Rs 600-750 per 40 kg. “Onion prices will further go down as arrivals from Rajasthan will increase which will also reduce the arrivals from Maharashtra,” Mr Sharma said.
In August, the MEP was hiked by $120 a tonne in two phases to curtail the exports. Onion exports from India between April-September 2007 were down by approximately 50% at 3.82 lakh tonnes as against 6.05 lakh tonnes in the corresponding period last year.
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