Minimum Export Price of Onions Hiked by $ 150 per Tonne .

The Government today increased the Minimum Export Price (MEP) of onions by $ 150 per tonne to restrict exports and, thereby, augment domestic supplies.

An official press release said the increase was for all destinations across the board. With this increase, the MEP for the Gulf countries stood at $ 525 per tonne during the remaining part of November 2010 as compared to $ 375 per tonne earlier.

The exports of onion is regulated through the mechanism of MEP, which is fixed by the National Agriculture Cooperative Marketing Federation (NAFED) in consultation with other State Trading Enterprises and leading associate shippers.

The decision to increase the MEP was taken by NAFED today after a meeting to review the sudden rise in prices of onions in the domestic market.

The release said NAFED would also start retailing of onions at reasonable prices from its outlets in Delhi to provide succour to consumers. NAFED is also initiating procurement of onions in bult quantities from markets of Western India.

It said all these efforts were expected to have a positive impact on the prices of onions till arrivals start from the late Kharif season.

The wholesale prices of onions in important growing pockets of Maharashtra and in the most important terminal market of fruits and vegetables at Azadpur in New Delhi have shown an upward trend in recent times.

The release said the wholesale prices in Lasalgaon, Pimpalgaon and Manmad "mandis" of Maharashtra are presently ruling between Rs. 1300 and Rs. 3200 (approximately modal rate of Rs.2038/quintal) with total arrivals of 18000 metric tonnes.

During the corresponding period last year, the prices in these markets were ruling in the price range of Rs. 261 to Rs.2751/qtl with a modal rate of Rs. 1348/qtl with arrivals of 43000 qtls. Similarly, prices of onion in Azadpur market are presently ruling in the price range of Rs.1500 to Rs.2250/qtl with a modal rate of Rs.1685/qtl with total arrivals of 16600 qtls against last year prices of Rs.1375 to Rs.1625/qtl with modal rate of Rs.1475 /qtl with arrivals of 14500 qtls.

The current increase in price is largely attributed to Kharif crop of onion getting affected owing to rains in Andhra Pradesh and Karnataka and also due to rains in Nashik area of Maharashtra. According to the NHRDF and trade reports, the production of Kharif onion in Maharashtra is also reported to have suffered setback due to this. Another factor which is seen to be instrumental in giving impetus to the price trend is that the stock of stored onion from the last Rabi has also been exhausted and "mandis" were closed due to Diwali in the first week of November.

However, this ephemeral spurt in the prices of onion is expected to ease out by the second week of December, when arrivals of onion from late Kharif season in Maharashtra may start, which will considerably augment the supplies to match the demand, the release added.

Source : netindian.in