Onion exports down by 14 pc in FY08

NEW DELHI: Country's onion export has dipped by 14 per cent at nearly 10 lakh tons in 2007-08 fiscal, but in value terms the decline has been marginal.

The exports of onion, a politically sensitive commodity, stood at 9.96 lakh tons in 2007-08, compared to 11.61 lakh tons in the previous fiscal, according to data provided by National Horticultural Research and Development Foundation.

In value terms, however, exports have declined marginally to Rs 1,116 crore from Rs 1,135 crore in the review period.

Higher export price during the festival season last year coupled with congestion at ports have led to decline in exports, according to an official from NAFED.

Nafed, along with 12 other agencies regulates the onion exports and fixes the Minimum Export Price (MEP) every month.

The onion exports went down during festival season last year as the government had increased the minimum export price (MEP) substantially to discourage overseas sales. The average MEP went as high as 495 dollars per ton.

The Centre had also slowed down the process of issuing export permit and made license mandatory for undertaking exports. These measures were aimed at increasing the domestic availability of the edible bulb to check the rising price of the commodity, which went up as high as Rs 30 a kg in the retail market.

Meanwhile, the average MEP for April has been fixed at 180 dollars per tonne.

The MEP stands in the range of 165-390 dollars per ton for most of the destinations. However, for the gulf countries, the major importers, the MEP is 180-210 dollars per ton. The MEP for Bangladesh has been increased to 185 dollars per tonne for April from 160 dollars per tonne.