Posted on 19th March 2010 by Swapnil Waikar in Agricultural

India exports onion at record price amid food inflation.

Press Trust of India / February 10, 2010, 0:53 IST

Food inflation may be a bane for the economy, but India appears to be capitalising on the shortage of onion and has exported the commodity at a record Rs 23 a kg in the beginning of 2010. The export price is almost at par with the domestic sale price; experts say and attribute the high realisation in the overseas market to increased global demand.

Food inflation, which has eased from a decade is high of about 20 per cent in December, stands at 17.56 % for the week ended January 23. In the past, export prices had touched a record Rs 22 a kg in October 1998, when domestic prices of onion were at Rs 70 a kg. However, this time, there is hardly any difference between domestic and export prices as onion is currently available at Rs 20-24 a kg.

According to the data maintained by the Nasik-based National Horticultural Research and Development Foundation (NHRDF), the country had exported 58,360 tonnes of onions in January 2010, down nearly 49 per cent from the year-ago period. Nevertheless, in October 1998, only 537 tonnes were exported with a price realisation of Rs 22,059 per tonne as the government had banned export in mid-October and it continued until January 1999.

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