Indian onion export growth has taken a dip due to uncertain weather conditions as well as problems with infrastructure.

A senior official at the National Agricultural said onion exports for December 2008 are likely to show a dip on the previous month of 20 per cent due to an increase in the minimum export price of the commodity by $75 a tonne and late crop arrivals.

India exported an estimated 100,000 tonnes of onions in November last year, up from 58,800t in November 2007.

The official said: “Apart from the increase in the MEP by $75 a tonne within a month to boost domestic supply, late arrivals of the crop and depleting stocks are likely to dent the exports in December.” he said.

India is trying to penetrate into European Union market in a progressive way. Indian retailer Reliance Fresh is making efforts to procure top-quality onions and explore export potential: traditionally there is good demand from Sri Lanka, Bangladesh and Gulf countries as well as Malaysia and Singapore.

In an attempt to check onion exports, India decided to allow them only under an export licence through designated agencies from October 5.

“There will be good export demand, if we slash MEP,” said one trader from Nashik, Maharashtra, adding arrivals are increasing from all major producing states, which would bring down prices further. It is also proposed to extend credit to growers to increase production and pave the way for achieving the target of export growth especially to Eurpoean Union countries.

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