India cuts export prices of onion
Within a fortnight, the Indian government has further cut the export price of onion by $100 to $250 a tonne to make it competitive in international markets.
"Minimum export price (MEP) of all varieties of onion, except Bangalore Rose onions and Krishnapuram onions, will be $250 per tonne," the Directorate General of Foreign Trade said in a statement yesterday.
On November 18, the government had reduced export price of onion by $125 to $350 a tonne.
Bangladesh is one of the key destinations for onion exports from India.
Soon after the decision, Agriculture Minister Sharad Pawar had hinted at a further decline in export prices of the kitchen staple to boost farmers' earnings.
Slashing MEP to $350 a tonne had failed to yield any substantial results as onions continued to sell at higher rates than those from China and other countries which are below $300 a tonne.
India's onion exports have declined by about 2.13 lakh tonnes from April-November 20, agri-cooperative Nafed, a principal government agency which controls onion shipments, has said.
India is the second largest producer of onions in the world after China.
In February, the government had lifted the ban on onion exports following protests from growers due to crashing of domestic prices.
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