Government cuts minimum onion export price from $ 150 per tonne to $ 700
The government reduced the minimum export price (MEP) for onion by $ 150 per tonne, as prices for the kitchen staple moderated.
The MEP for onion, the floor price below which exports are not allowed, has been reduced to $ 700 per tonne from $ 850 set in November, according to the Commerce Ministry.
MEP Onion was abolished in December 2015 but brought back in November 2017 with the aim of controlling the rise in prices which prevailed at Rs 50-65 per kg in most cities.
The MEP of $ 850 was applicable until January 20.
“The export of onions … will only be allowed on a letter of credit (LC) subject to a minimum export price (MEP) of $ 700″ per tonne until Feb. 20, the ministry said. in a notification.
According to the Price Monitoring Unit of the Ministry of Consumption, retail onion prices are around Rs 40 per kilogram in most cities. However, the key plant ingredient was selling for Rs 51 in Delhi and Rs 46 in Delhi.
As onion prices started to firm in the last months of 2017 on tight supplies, the government asked state-owned MMTC to import 2,000 tonnes of onions, while other agencies Nafed and SFAC buy onions locally and source them in areas of consumption.
Supplies had run out as large amounts of exports were undertaken in the first four months of the current fiscal year. The country exported 1.2 million tonnes in April-July this fiscal year, up 56% from the previous year.
About 40 percent of the country’s total onion crop is produced during the kharif season and the remainder during the rabi season. The kharif harvest, however, cannot be stored.
Maharashtra, Karnataka, Madhya Pradesh, Bihar and Gujarat are the main onion producing states.