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Min export price of onion $350/tonne slashed

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(Times of India) PUNE: The union government has slashed the minimum export price of onion to $350 per tonne from $475 per tonne to boost the onion export of the country. The notification was received on Friday evening by the Maharashtra state agriculture marketing board ( MSAMB), an institution floated by the state government for better marketing of agriculture produce.

Sandesh Bajare, authorized officer of onion export department of the board, said, "The $350 per tonne price is still higher than the export prices of China and Pakistan, which is around $275 per tonne. But the buyers from African continent will continue to buy it for the taste. The onion from China has higher water content; hence it does not match the taste of Indian onion."

Maharashtra has 80% share in the onion export of the country, he said. "The total onion production during 2011-12 has been estimated to be around 50.36 lakh tonne. The state has produced 49.05 lakh tonnes onion during 2010-11, when the national production was 150 lakh tonnes. The area under onion cultivation has been increased from 3.40 lakh hectares in 2010-11 to 3.59 lakh hectare this year. Onion being a short term crop - three months - is taken three times between July to April period," Bajare said.

"Despite the higher export price, country has exported 8.55 lakh tonnes till October 31. Of this, 6.85 lakh tonnes were exported from Maharashtra. In September, when the minimum export price was $475 per tonne and a ban was imposed on export during September 9 to 20, 2.20 lakh tonne onion was exported, of which, 1.80 lakh tonnes were from the state."

The other states such as Karnataka, Gujarat, Rajasthan, Andhra Pradesh and Madhya Pradesh also produce onion and partially contribute to exports. The onion grown in Bihar and Orissa are purely consumed domestically, Bajare said.

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