Curbs put on onion exports

INFLATION AT A TWO-YEAR HIGH

The government has swung into action to curb onion exports and check the rise in prices in the domestic market by effecting an 8 per cent hike in its minimum export price (MEP).

The MEP has been increased by $25 per tonne to $330, with effect from February 12. Also, export canalising agencies have been directed to go slow on exports.

"Measures have been taken to make exports less lucrative and augment the domestic availability of the commodity," said Alok Ranjan, managing director, National Agricultural Cooperative Marketing Federation (Nafed), which revises the MEP every month.

Onion exports jumped 62 per cent in the April-January period of the current financial year, causing a 140 per cent rise in domestic retail prices. The country exported 9.42 lakh tonne of onions, valued at Rs 775.43 crore, in the said period.

Retail onion prices surged from Rs 10 to Rs 24 per kg over the past month,. Of late, prices have slipped to Rs 20 per kg levels.

Onion production this year was similar to last year's output of 62.23 lakh tonne, said an official with National Horticultural Research and Development Foundation.

Onion exports have been canalised through 13 agencies of the union and state governments since 1998, with exporters required to obtain a No Objection Certificate (NOC).

"These agencies have been directed to slow down issuance of NOCs, which will bring down exports. Already, exports have slowed. Against last February's export of 62,000 tonne, only 10,000 tonne has been exported so far this month," Ranjan added.

Onion prices had stabilised in the wholesale market at Rs 1,050-1,100 per quintal and its effect would be felt gradually at the retail level, he said.