Onion export from India has declined by almost half on the back of steep hike in export prices and fixing limit of shipment to a maximum of 500 tonnes a day, but the scenario in domestic market is yet to improve.
On an average, 6,000 tonnes of onion were exported from India daily before the steps (to curb export) came into play, after which it has come down to approximately 3,000 tonnes a day, sources in Agri cooperative NAFED said.
The National Agricultural Co-operative Marketing Federation (NAFED), along with 12 other agencies, including NCCF, STCL, GAIC, Bangalore based CAPPEC and Pune based MSAMB regulate onion exports from the country.
Concerned over rise in prices of onion to a high of Rs 40 a kg in the retail outlets, NAFED had last the increased minimum export price (MEP) of the vegetable on November 15 from USD 375 a tonne to USD 525 a tonne for this month.
Later, on November 24, it issued another notification to fix limit to a maximum of 500 tonnes daily for which NOC could be given for shipment of onion with the same objective, the sources said.
India exports onion to Bangladesh, West Asia, Singapore and Malaysia.
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The country has shipped 10.10 lakh tonnes of onion till mid-November in this fiscal, against 12.99 lakh tonnes in the year-ago period, the official data showed.
The hike in MEP has made Indian onion competitively costly in the international market.
NAFED sources said while Indian onion is sold at USD 525 a tonne, the same from China was available at USD 450 per tonne, Iran USD 375 a tonne, Egypt USD 325 a tonne, Saudi Arabia USD 300/tonne and Karachi USD 500/tonne.
But, drop in flight of onion from the country is yet to sooth the scenario at domestic markets.
Onion is still expensive at Rs 40 a kg in retail outlets in Delhi.
Meanwhile, NAFED has said arrivals of onion in markets of Delhi and elsewhere would pick up from Nasik, as a clear weather there since Thursday would ease the retail market.
Onion was available at Rs 25 a kg in wholesale in Azadpur market (Asia's biggest fruit and vegetables market) on Saturday.