Indian gov to reduce onion MEP
Supply of the produce in the Nasik wholesale mandi has gone up by 80 per cent as compared with the same period last year. "About 1,400-1,500 trucks arrive daily in our market in Nasik. It is due to high production. At the same time last year, only 700-800 trucks used to reach here. Prices have come down to Rs 8-10 a kg," said Mahendar Khattau, a trader in Nasik wholesale mandi. He said that the market is facing a situation of oversupply and farmers have started facing losses.
The issue was also raised in Parliament on Wednesday and the central government decided to reduce the Minimum Export Price (MEP) of onions following a sharp decline in wholesale prices due to rise in supply of Kharif crops.
The MEP is expected to reduce in a day or two. Sources said, the MEP is likely to be reduced in the range of USD 350-450 per tonne from USD 700 per tonne. As a result, the sluggish export market will get a boost, which would help stabilise onion prices in the domestic market.
Nanasaheb Patil, director of the National Agricultural Co-operative Marketing Federation of India Ltd (NAFED), said, "The unseasonal rains and hail had damaged the summer crop in February and March, which affected onion production. The average wholesale onion prices skyrocketed to an all-time high of Rs 5,700 a quintal in August due to scarcity."
He added, "The centre increased the MEP from USD 425 a tonne to USD 700 a tonne but the situation has changed now. The onion average wholesale onion prices have reduced to Rs 1,100 a quintal at Lasalgaon and it may decline more due to possibility of onion glut in the next couple of weeks. Farmers will suffer more losses and will not recover even production cost if the prices decline further."
Meanwhile, the average wholesale onion price at Lasalgaon was recorded at Rs 1,150 a quintal on Wednesday. The minimum and maximum prices were recorded at Rs 960 and Rs 1,550 a quintal, respectively. Around 16,000 quintals of onions were auctioned at Lasalgaon on Wednesday.
Source: indiatimes.com/businesstoday.in
