New Delhi: The steep hike in onion export prices has failed to improve the domestic market scenario as the vegetable continues to be expensive at a retail price of Rs35 a kg in Delhi, reports PTI.
Besides, onion continues to be expensive in the wholesale market, even after the agri-cooperative and onion export regulator NAFED hiked the commodity export price last week to $150 a tonne.
NAFED's decision to increase the minimum export price (MEP) from $375 a tonne to $525 a tonne for this month was necessitated by sharp increase in retail price of the vegetable at Rs40 a kg over a fortnight period.
The measure, the cooperative had hoped, would help bring down the onion price below Rs30 per kg.
However, trade sources inform that onion is being sold between Rs25-Rs30 a kg in wholesale market in Azadpur, which is Asia's biggest fruit and vegetables market. They add this has been the prevalent rate for the last 4-5 days.
Good quality onion at retail outlets in Delhi is available at Rs35 a kg while poor quality wet onions are being sold at Rs30 a kg.
The country has shipped 10.10 lakh tonnes of onion so far this fiscal, against 12.99 lakh tonnes in the year-ago period, the official data showed. India exports onions to Bangladesh, the West Asia, Singapore and Malaysia.
Prices of onion have risen because of supply crunch due to rain, triggered by cyclones in the South and heavy downpours in Maharashtra and Madhya Pradesh, Onion Merchants Association Azadpur market president Rajendra Sharma told PTI.
Maharashtra ranks first in onion production with a share of 18%.
There is a shortfall in supply of 35%-40% at Azadpur market in Delhi, which has lifted the price, said Metharam Kriplani, president of Chamber of Azadpur Fruit and Vegetables.
"Export rush of onion for handsome profit has telling affect on its prices in domestic market," Mr Kriplani said.
But, the situation is showing some improvement with arrival of crop from Rajasthan, Mr Sharma said. Over 275 tempos of onion (each carrying about 8 tonne) arrived at Azadpur market today from Rajasthan to boost the supply, he added.
Meanwhile, NAFED has said it will be reviewing the export prices by month-end.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
