Indian onion exports continued to fall in August as rising prices bit into demand, the fifth consecutive month of declining volume.
Exports fell to 87,428 tonnes over August, a 53 per cent decline in the 186,144 tonnes the same month last year, reported the Press Trust of India (PTI).
The decline is due to the steady rise of the minimum export price (MEP), set by regulator Nafed to control domestic onion pricing.
The MEP was boosted in August to US$220 per tonne to slow rising prices in India, which has further distanced the country’s onions from competitors.
“Neighbouring countries such as Pakistan and China have gained as their prices were lower by US$40-50 at US$170-180 a tonne last month as against the Indian price of US$220 a tonne,” a senior official with Nafed told PTI.
Onion export value during August was Rs934m, compared to Rs2.21bn the same month last year.
April-August shipments were down to 686,061 tonnes, compared to 979,817 tonnes over the same period last year.
The Indian onion MEP is likely to rise again in September to US$275 a tonne, putting the country’s exports at a further disadvantage.
