Onion prices dip with hike of minimum export price: NAFED

New Delhi, Aug 22 (UNI) The hike in the minimum export price (MEP) of onions from 345 to 445 dollars per tonne has snubbed the speculative export of onions resulting in lowering of domestic price by around Rs 400-500 a quintal in the country, the National Agricultural Coperative Marketing Federation of India (NAFED) said here today.

The hike in MEP, effective from August 20, is intended to control and sprilling prices of onion in the domestic market, as the commodity of daily use in every kitchen, its high prices have always been a politically sensitive issue in the country.

Officials of NAFED, which is price regulatory authority, said the nodal price of onion had come down from Rs 1,700-1,800 to Rs 1,260 a quintal in main market of Nasik.

Recently, with the increase in export of Indian onion to Dubai and Pakistan, the prices of the commodity also shot up in the local markets, causing a heart-burning among the housewives.

The MEP is binding on all exporters including on those of 13-14 private players, officials said.

India exported 11.78 lakh tonnes of onion last year (2006-07) which was the highest quantity so far. Otherwise, Indian exports ranges around 6-7 lakh tonnes every year.

India has three crops of onion every year and produces around 60-70 lakh tonnes annually.

UNI