Onion prices fall by 15% due to lack of export demand
export ban on onions 10 days ago, export demand has dried up as Indian onion is more expensive than Pakistan's. Besides, subdued exports dampened domestic onion prices by over 15 % in the last week.
Exporters don't see demand coming for another 15 days as overseas buyers, who have stocked overpriced Pakistani onions when Indian onion was not available. They want to liquidate their stocks as India's entry has crashed the international onion prices by more than 50% in a week.
«Most of the buyers from our traditional markets like Malaysia, Sri Lanka, UK and the UAE had stocked onions from Pakistan. They had not expected the Indian government to lift the export ban till the general elections were over,» said an exporter of onions from Nashik, who claims that the export orders, after spiking for a couple of days, have suddenly dried up. India's lifting of its export ban in May took the international markets by surprise. India has kept a minimum export price (MEP) of $550 per tonne with export duty of 40%.
Exporters say that now Indian onion has become more expensive than Pakistani onion. «The difference of about Rs 40-45/kg between Indian onion and Pakistani onion is very big for any consumer. It is difficult to get export orders at this price,» said the exporter quoted above.
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