Indias move to roll back onion export floor price throws up several questions
The Dollar Business Bureau | @TheDollarBiz The Indian government has rolled back the minimum export price (MEP) for onions by around 40% from $500 per tonne (about Rs.30 per kilogram) imposed on July 2, 2014 to $300 per tonne (FOB). According to a Directorate General of Foreign Trade (DGFT) notice dated 21 August 2014, the new MEP will be applicable with immediate effect. India usually has a surplus of onions and exports stood at around 1.5 million tonnes in FY2013-14, with most of the shipments going to Bangladesh, Malaysia, Sri Lanka and UAE. However, there were concerns that delayed rainfall may lead to a shortage in August – September 2014, and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), ...
