Govt sets $850-a-tonne minimum price for onion exports, allows import

Decision follows sudden spurt in onion prices, which have more than doubled since August; Traders says govt action unwarranted

In a notification late Friday, the Directorate General of Foreign Trade(DGFT) fixed a Minimum Export Price (MEP) of $850 a tonne on onion and also allowed the import of 2,000 tonnes of the vegetable through nominated agencies. 

While government-owned MMTC has already stated that it will not import the bulb from Pakistan due to the Kashmir issue, other countries such as Afghanistan and China can export it to India at the current prevailing price or even higher,  with the entry of Indian importers.

The government's decision comes at a time when onion prices have more than doubled since August. Trading at Rs