Agri Business

Minimum export price of onion slashed by $75/t

PTI New Delhi | Updated on March 17, 2011 Published on March 17, 2011

ONION



The Government has slashed the minimum export price (MEP) of onion for the third time this month to $275 a tonne from the earlier price of $350 a tonne.

“MEP of onions other than Bangalore Rose Onions and Krishnapuram onions will be $275 a tonne F.O.B (freight-on-board),” the Directorate-General of Foreign Trade said in a notification.

On March 1, the MEP was lowered to $450 per tonne from $600 a tonne and again on March 8, it was reduced to $350 a tonne.

Last month, the Government had lifted a ban on onion exports after farmers' protests on crashing of domestic prices. It, however, capped the MEP at a higher level of $600 a tonne as a precautionary measure to control retail prices, which had shot up to Rs 70-80 per kg in December last year.

However, the Agriculture Minister, Mr Sharad Pawar had subsequently indicated that the MEP of $600 a tonne was almost double the prevailing rate in international markets, rendering the onion exports uncompetitive.

The MEP for Bangalore Rose and Krishnapuram onions was $1,400 a tonne.

The Government had imposed a ban on export of the kitchen staple after its prices rocketed and touched as high as Rs 80-85 a kg.

Published on March 17, 2011
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