After the Centre reduced the Minimum Export Price (MEP) for onions to $400 per ton from $700 per ton, onion exports have picked up to some extent during this month but overall the quantum is only 4.5 lakh MT, compared to average of 10 lakh MT to 11 lakh MT during earlier years. Rates, however, are stable around Rs 1,000 per quintal, which is very low from the farmers’ viewpoint.
The Centre was forced to lower the MEP following massive agitations, road blockades and processions undertaken by farmers.
Lasalgaon Agricultural Produce Market Committee (APMC) chairman Nanasaheb Patil stated that the current rate of around Rs 1,000 per quintal was not affordable to farmers. “There have been less exports this year compared to earlier years. The highest export is 18 lakh tons while the present year’s export is around 4.5 lakh tons,” Mr Patil said. He also said that reduction of MEP does not translate into huge sales overnight. Mr Patil further added exporters had told him that, Egyptian onion, which is costlier by two rupees per kg, is still preferred by foreign buyers over Indian onion. The reason, he stated was that India’s export was volatile and foreign buyers want a stable market to deal with.
In Chakan in Pune, the farmers have begun harvesting Unhal variety, which is a storage variety while in Nashik, the red onion, which perishes in a fortnight, is being sold. The Unhal variety is available at nearly the same rate as red onion. Exporters naturally prefer the storage variety.
