Onion export price reduced by $20 a tonne

NEW DELHI: Cooperative major Nafed has decided to cut the minimum export price (MEP) of onion by 20 dollars a tonne for October with the domestic prices showing signs of stability amid surplus availability.

The average MEP now stands at $230-235 a ton. "We have reduced the MEP of average quality onion by 20 dollars a ton for all destinations as the domestic price has shown signs of stability and actually fallen," a senior official with the National Agricultural Cooperative Marketing Federation (Nafed) said.

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.

The cut in MEP is likely to boost export prospects. Last week, Nafed Vice-Chairman C B Holkar said India's onion exports might rise by 20 per cent to reach 12 lakh tonnes in 2008-09 compared with 9.96 lakh tonnes last year on the back of good production.

Onion exports have shot up to 7.09 lakh tonnes between April and August from 3.82 lakh tonnes in the same period last fiscal. Onion exports in 2007-08 had suffered due to lower production.

After the revision, the onion MEP (Cost and Freight) now stands at $230 a tonne for 'break bulk' category and USD 235 a tonne in container shipment for destinations like Dubai and Sharjah.

The southern India mainly exports onion to Sri Lanka, Malaysia and Singapore, while the Nasik varieties are sent to all export destinations, particularly to Gulf nations.

According to the data maintained by the Ministry Of Consumer affairs, the retail prices of onion in the national capital are ruling at Rs 15.