India hikes minimum export price of onions by 67 percent

The government Wednesday hiked the minimum export price of onions by 67 percent to $500 per tonne in a bid to discourage exports and improve local supplies as its prices surged in domestic markets.

After the increase, the minimum export price of onions translates to Rs.30 per kg. Onion prices have soared in the domestic markets in the recent weeks and it is now sold for Rs.20-30 per kg in retail markets.

The decision to hike the minimum export price was unanimously taken by an Inter-Ministerial Committee at a meeting here June 30.

"Keeping in view the rising retail and wholesale prices and delayed monsoon, the Committee unanimously decided to fix the minimum export price at $500 per tonne which translates to Rs.30 per kg with a view to arrest domestic price rise and augment domestic supply," a commerce ministry statement said.

The previous minimum export price of onions was $300 per tonne.