In Nashik, India, unseasonable weather has adversely affected the onion crop leading to a decline in onion exports: during the first half (April-September) of the 2015-16 financial year export declined by 17.79% against the corresponding period last year. Scarcity of the crop and a higher Minimum Export Price (MEP) are blamed.
Sources in the National Agricultural Co-Operative Marketing Federation of India Ltd (Nafed) said the country exported 485,000 metric tonnes of onions during the first half of the current financial year as against 590,000 metric tonnes during the corresponding period of the 2014-15 financial year.
Nanasaheb Patil the director of Nafed said, "The MEP of onions had been increased in the range of 400 US dollars to 700 US dollars, which was much higher compared to the MEP of other neighbouring countries like Pakistan, China and Egypt. Hence, there was no scope for onion export. In fact, it is almost like an unannounced ban on onion export."
Patil said, "The unseasonal rain and hail had badly damaged the summer onion crop during February and March that led to the scarcity of onions. The lack of export quality of onions also led to the decline in exports."
The onion prices had increased a lot during August and September. An average wholesale onion prices had recorded an all-time high of Rs 5,700 a quintal at Lasalgaon APMC on August 22. The central government had immediately hiked the MEP of onions from 425 US dollars to 700 US dollars per tonne.
Patil added, "The supply of Kharif onion crop has increased at the mandis. The government has removed the MEP of onions so there is scope for export of onions in the next three months. Around 300,000 tonnes of onions are expected to be exported during the last quarter (Jan-March) of the current financial year."
