10 year high for Indian onion exports
The Central government’s decision to provide repeated extensions to the export subsidy and zero minimum export price (MEP) of the produce has fuelled the exports in the last year or so.
Exports of onions play a crucial role in balancing the domestic price of the produce in the wholesale markets. India consumes almost 90 per cent of the home-grown produce, but 10 per cent export is necessary to prevent a price crash.
Exports had virtually stopped in 2014, due to the Central government’s decision to increase the minimum export price (MEP) in view of the steep increase in onion prices. Due to a glut in the prices of the bulb in 2015, the Central government had again reduced the MEP to zero (0) in December 2015.
The United Arab Emirates (UAE), Sri Lanka, Singapore, Malayasia and Russia are major export destinations for Indian onions.
Source: indianexpress.com
