Govt cuts floor price for onion exports again

(Reuters) - India has cut the floor price for onion exports to $350 per tonne, a government statement said, its second reduction this month, boosting prospects of overseas sales of the vegetable from the world's second biggest producer. "Minimum Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be $350 per tonne F.O.B.," said the Directorate General of Foreign Trade, an arm of the trade ministry, in the statement issued late Tuesday. On March 1, the government had lowered the MEP to $450 per tonne from $600. Last month, the government lifted a ban on onion exports to help farmers after supplies eased, bringing prices down from a record high. The Gulf countries and south Asian countries are the main buyers of the Indian bulb. March 9th, 2011 Source: Reuters India