1. Commodity News

Restrictions on export of Onion

KJ Staff
KJ Staff

Hike in prices of onion is the result of exports undertaken in the first four months of this fiscal. The country exported 12.29 lakh tonnes in April-July of this fiscal, up by 56 percent from the year-ago period. Also, the new 2017-18 Kharif crop -- which is being harvested -- is expected to be less owing to fall in acreage. 

Prices of Onion has raised high by 50-65/ Kg which is the result of export in huge amount. Looking into the seriousness of the matter government is planning to impose a minimum export price of the onion by $ 700-800/ ton to curb exports and check local prices.

MEP for onion was scrapped in December 2017. In a meeting called by the commerce ministry, the MEP issue was discussed in detail with exporters and other stakeholders besides officials of the consumer affairs ministry. The final notification for the same will be issued very soon. Recently, a senior consumer affairs ministry official had said that the new Kharif crop is likely to be lower by 10 percent as the area is sown is less by 30 percent. As per knowledge,40 percent of the country's total onion crop is produced in the Kharif season and the rest during the rabi season. The Kharif crop, however, cannot be stored, which is one of the reasons behind prices not coming down.

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