Govt raises onion export price to cool local prices

Exports will now be possible only at or above $500 per tonne

The government has hiked minimum export price (MeP) on onions to $500 a tonne fom $300 a tonne in just 17 days of reimposition of export curbs. 

 

The decision was taken as MEP of $300 a tonne failed to arrest the rise in domestic prices of the edible bulb.  

 

"The Inter-Ministerial Committee in their meeting held on 30th June observed that the wholesale and retail prices of onion are going up in producing and consuming mandies and despite MEP at $300 PMT there is no appreciable decline in the export of onions," an official statement said here.

 

Keeping in view the rising retail and wholesale prices and delayed monsoon, the Committee unanimously decided to fix the MEP at $500 per tonne, which translates to Rs 30 per kg. 

 

The decision is aimed at arresting domestic price rise and augmenting domestic supply of onions. 

India exports about 1.5 million tonne of onions a year. Fears of domestic shortages have been fueled by a scorching summer, a lack of chilled storage and a threat of strike action by distribution workers.