Lowering of onion export prices to $250 a tonne has failed to boost its outbound shipment with China and Egypt continuing to dominate the international market by selling it at less than $200 a tonne.
Onion exports from India dropped by nearly 37 per cent in November this year compared to the corresponding period of last year, sources in agri-cooperative NAFED, principal agency that grants no-objection certificate for onion export, said.
India exported 55,150 tonnes of onion in November 2011 against 80,314 during the same period last year.
The trend continued in December too as only 50,328 tonnes of onion was shipped against usual flow of over one lakh tonnes in previous years.
The year 2011 has not been good for India from point of view of onion exports.
On demand from onion growers, the sources said the Nafed has written a letter to the Commerce and Industry ministry, which is now regulating trade in onion through DGFT, to reduce the MEP to $150 a tonne.
India, the second largest producer of onion in the world after China, witnessed nearly 25 per cent dip in the onion export in 2011 till November vis-a-vis last year, the Nafed sources added.
“Since the price of onion in the international markets is ruling at less than $200 a tonne, Indian onion with a higher MEP of $250 per tonne is attracting fewer buyers,” Mr Ajit Shah, President of Agriculture Export Association, Mumbai told PTI.