With the Centre removing the Minimum Export Price (MEP) on onions on Thursday, farmers and traders are looking forward to better prices but it is difficult to gauge the effect on Friday as markets are closed for four days and will reopen on Monday. The Centre had increased MEP on onions to $700 from the earlier $425 in August when prices rose to '80 per kg. Lasalgaon Agriculture Produce Market Committee chairman Nanasaheb Patil stated that there are always holidays preceding the MEP removal. “The last time when the Centre reduced the MEP, the markets were closed for three days due to holidays. However the prices are expected to appreciate by Rs 200 to Rs 300 per quintal on Monday,” he stated.
Mr Patil said that removal of MEP was a belated decision andshould have had been taken earlier. “We were continuously following upon this issue with the government and regularly sent reminders,” he said.
He also said that the Kharif sowing this year was nearly three times the average sowing. “Due to this large quantities of onions are arriving in the markets. The removal of MEP will definitely give respite to the farmers. The effect on prices will be seen only on Monday,” he said.
Onion merchant Sohanlal Bhandari said that purchase for exports was low, as, being the yearend, international markets are closed. “Exporters felt that exports would commence next year and began buying nearly 5,000 tonnes daily. Now, after the MEP is zero, they will buy at an average of 10,000 tonnes per day,” he said.
Now exports of onions will be possible to countries like Sri Lanka, Singapore and Bangladesh. MEP is the minimum official price by which exporters may sell their product in international markets. This is counterproductive because of competition from other countries like China and Pakistan, who sell lower, while Indians exporters have to wait for buyers, exporters said.
