India govt cuts minimum export price of onion

The Indian government has reduced the minimum export price (MEP) of onion to US dollar 350 per tonne following improvement in domestic supply situation and softening of prices. In June this year, the MEP on onion was re-introduced at $300 per tonne which was further raised to $500 per tonne in July this years as prices had continued to move upwards. Onion prices were rising due to speculation amid anticipation of below normal monsoon despite sufficient supply in the country. During June, the wholesale price of onion at Lasalgoan in Maharashtra – Asia's largest onion market – had risen by about 80 per cent to Rupees 18.50 per kilogram (kg). At present, the rates are hovering around Rs 13 to 14 per kg at Lasalgoan. Onion production is estimated to have risen to 19.2 million tonne during 2013-2014 crop year (July-June), from 16.8m tonne in 2012-13. Exports meanwhile fell to 1358,000 tonne last fiscal from 1822,000 tonne in 2012-13. The domestic demand during the lean period from June to November is met through stored robi (winter) and fresh kharif (summer) produce, according to PTI.