The Hindu Business Line : NAFED raises onion export price by $25 a tonne

NEW DELHI: Cooperative major National Agricultural Cooperative Marketing Federation (NAFED) has raised the minimum export price (MEP) of onion by $25 a tonne to an average of $305-310 for December, a move aimed at containing the domestic prices and incre asing the availability of the commodity.

“We have raised the MEP by 25 dollars in sync with domestic scenario. We are keeping close vigil and, if needed, we may review the MEP in mid-December,” a senior official with the NAFED said.

The NAFED had earlier raised the MEP by $50 a tonne in mid-November to contain price rise. The official said fresh onion crops, which were supposed to arrive by the end of October, got delayed by 15 days, putting pressure on stocks.

Wholesale prices of onion in the major producing region of Lasalgaon in Maharashtra moderated to Rs 851 per quintal from Rs 1,021 on November 18, reflecting the impact of the increase in the MEP by $50.

The recent hike in MSP is aimed at further boosting domestic availability and checking prices, the official said.

Onion MEP (cost and freight) stands at $305 a tonne for the 'break bulk' category and $310 a tonne in container shipment for destinations such as Dubai and Sharjah.

NAFED is the nodal agency for onion export and it decides the MEP every month in consultation with 12 other agencies after taking into account domestic availability and prices.

The southern India mainly exports onion to Sri Lanka, Malaysia and Singapore, while the Nasik varieties are sent to all export destinations, particularly to Gulf nations. - PTI

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