The Central government’s decision to increase the minimum export price (MEP) of onion to $425 per quintal will spell doom for the onion market, which is already on a decline, experts said. However, this is good news for domestic consumers as onions will be available at a cheaper price. “Last week onion prices crashed by Rs 250 — Rs 300 per quintal in Lasalgaon. The maximum price was of Rs 1,900 and minimum Rs 700 per quintal. As per demand and supply dictum, the prices have dropped due to saturation that means there is plenty of onion in the markets,” said Nanasaheb Patil, chairman, Lasalgaon agriculture produce market committee (APMC).
Mr Patil further said that on June 17, last year, the Centre had announced that the MEP of onion would be $300 per ton. “On July 2, 2014 the government hiked this amount to total $500 which was later brought down to $220 this year. Now this amount had been hiked by $175. The present MEP is $425 per quintal. When the markets closed last Friday, we had a stock of 14,000 quintals of onion,” Mr Patil said.
Shetkari Sanghatna leader Arjun Tatya Borade said that, even after natural calamities hit the state, the production cost of onion has increased. So the crop should fetch better prices. However, due to generous yield, the prices have fallen. No one had agitated for lowering the prices of onion anywhere in the country. There was no necessity of increasing the MEP,” Mr Borade said.
