The Horticulture Produce Exporters’ Association (HPEA) in India is advocating for a 5% incentive on onion exports from the central government to stabilize wholesale prices and enhance international sales. This follows a 60% decline in average wholesale onion prices at Lasalgaon and other district APMCs over two months, despite the removal of a 20% export duty.
At Lasalgaon APMC, India’s largest wholesale onion market, prices fell from $375 per ton on February 14 to $151 per ton. The average wholesale price for summer onions has decreased to $151 per ton since April 1 due to increased supply. Late kharif onions are priced even lower at $109 per ton. Summer onions account for 90% of market arrivals, with late kharif onions making up the remaining 10%.
Vikas Singh, vice president of HPEA, emphasized the need for increased incentives to compete globally and prevent farmer losses. “Currently, Pakistan is exporting onions at the price of $190 per ton, while the onion export price from India is between $230 and $300 per ton, depending on the quality of the produce,” Singh noted.
Exporters are calling for the Remission of Duties and Taxes on Exported Products (RoDTEP) rate to be raised from 1.9% to 5%.