Indian 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. Since 2015, the exports of onions have seen a steady rise and at the end of the financial year 2016-17, 34.92 lt of the bulb was exported out of the country.
The major export destinations for Indian onion are:
1. The United Arab Emirates (UAE)
5. Russia
Over the last two weeks, prices of onions have seen a spike, with the Lasalgoan market recording an average price of Rs 12 per kg. This price rise was temporary and will remain till the Kharif crop arrives early September. Market sources pointed out that the price rise was due to stockists wading in the market in anticipation of a shortage in the future. Agriculture analyst Deepak Chavan supposed that the rise in price is due to fundamental market forces. This price system is going to keep the country on a high level on the international market giving the chance to sign new trade agreements.
No comments:
Post a Comment