India raises onion export price

FE Report
The Indian government has fixed the Minimum Export Price (MEP) of onion at US$ 300 per tonne to discourage export instead of the earlier minimum overseas sale price at $ 150, an announcement of the Ministry of Commerce of the Indian government in New Delhi has said.
The Narendra Modi government has taken the decision to combat the rising food inflation, to which his government has attached high priority, to keep the market stable, the announcement said.
There is a growing concern in Bangladesh that the Indian government's decision may impact local market, because the annual supply shortfall here which varies between 0.3 million to 0.4 million tonnes is being mostly met by imports from India. Many people in the business circle fear that any rise in export prices on the Indian side will essentially push prices of onion up in the local market.
But some local importers have ruled out the possibility saying Bangladesh has had a good harvest of onion this year and since the stock position is good, the chance of supply shortfall and price escalation is similarly bleak.
A senior official of Bangladesh Trading Corporation (BTC) held the similar view while talking to The Financial Express Thursday.
He said in a good onion harvest year the dependence on supplies from India was marginal. But there was a fear that speculators might take the advantage of the situation, he said.
The previous Congress-led government in Delhi was maintaining a similar MEP of onion and potato to tame the rising inflation and its failure had made the ruling party unpopular to people. It lost the election.
So the new BJP government is aware of the consequences of the voters' unhappiness and it wants to plug the risk from the beginning.
Rabiul Islam, a stockist and wholesale agent of onion and spices at Nowabgonj market in the city held a different view. He said the price was stable at the moment, but on arrival of Ramadan, when onion is used most the situation might not remain so. Rabiul said with new arrival of imported onion the price calculation might be different.  
In fact importers are regularly importing Indian onion, no matter there is enough production and supply in local market.
Bdnews24 reports: Kartik Chakrabarty, the secretary of Petrapole LC Station C&F Staff Welfare Association, said, "The prices of onion and potatoes have gone up in Indian markets. The price has been raised to discourage exports."