Onion exports surge 44%

The country's onion exports in 2006-07 (April-March) jumped 44 per cent to 11.22 lakh tonne against 7.78 lakh tonne last year. In rupee-term, the exports in 2006-07 were valued at about Rs 975 crore.

Meanwhile, according to the National Horticultural Research and Development Foundation, production of onion was 66.68 lakh tonne, up only 7 per cent over last year's 62.23 lakh tonnes. 
 

HIGH RISE Onion production and export
Year	Production Lakh tonne	Export lakh tonne	Rs crore
2000-01	52.32	3.30	323.00
2001-02	55.85	5.06	411.00
2002-03	54.51	5.45	387.00
2003-04	57.21	8.40	821.00
2004-05	59.42	9.41	817.00
2005-06	62.23	7.78	715.00
2006-07	66.68	11.22	975.00
Source:National Horticultural Research and Development Foundation

In February, retail onion prices surged from Rs 10 to Rs 24 a kg on account of rising exports. This forced the National Agricultural Coperative Marketing Federation (NAFED) to raise the minimum export price (MEP) by $25 a tonne to make exports less lucrative. Following this, prices slipped to Rs 12-14 a kg levels. The MEP was lowered again with effect from April 1.

"While MEP has been reduced, it is still higher compared to the domestic onion prices. Market arrivals are good and prices have cooled down", said Alok Ranjan, managing director of the National Agricultural Cooperative Marketing Federation.

The federation revises the MEP on a monthly basis and no exports can take place below this price.