New Delhi, August 20
To check speculative export of onions and control its spiralling domestic price, the National Agricultural Cooperative Marketing Federation of India (Nafed) today increased the minimum export price (MEP) of onion by $100, from $345 to $445 per tonnes.
Effective from today, the decision is expected to control the price of onion within the next four to five days by putting a check on speculative export. Nafed officials expect the situation and onion prices to be completely under control within the next two to three weeks by September 10, around that time new crop will also arrive in Nasik markets
In the past week, the onion prices have been surging and there has been a substantial increase in the domestic prices of the commodity throughout the country. Nafed officials say that price rise during this time of the year is quite common and a "temporary phenomenon".
During this time of the year, onion export from Pakistan to Dubai is at the fag end. At present substantial onion produce from western parts of India is being exported to meet the demand in Dubai.
Recently onion export to Dubai from India increased. While exporters from Nasik and Pune area of Maharashtra, which contributes almost two third to the total onion produce of the country, preferred to export large quantities of their produce to earn maximum profits, it had rippling effect on domestic market
Mumbai: India is likely to face a severe shortfall of onions this year as Maharashtra's farmers switched to cultivating sugarcane last summer.
"The summer onion crop which lasts throughout the year has been less this year as farmers shifted to cultivating sugarcane," says Shambu Mohite, a trader at the Lasangaon market at Nashik, the largest onion market in the country.
According to wholesalers, the availability of onions will continue to fall sharply till the winter crop arrives in late September. "The kharif crop, however, has a short shelf- life and prices could soar by Divali," says Mohite.
