Govt. imposes minimum export price on onions

The government has put across a minimum export price (MEP) of $850 per tonne on onions to increase domestic supplies and to check rise in prices. MEP is the minimum rate below which exports are not allowed.

 

Concerned over the rise in onion prices, Consumer affairs minister Ram Vilas Paswan had sought that MEP be imposed on its exports by the commerce ministry. He also sought the removal of sops on export of the kitchen staple.

 

The government has asked state-run Metals and Minerals Trading Corporation (MMTC) to import 2,000 tonnes of onion, while other agencies Nafed and the Small Farmers Agribusiness Consortium (SFAC) to buy onions locally and supply in consuming areas.

 

Retail onion prices, which have shot up to Rs. 50-65 per kg in most cities, have come under pressure due to tight domestic supplies.

 

The country exported 1.2 million tonnes in April-July of this fiscal, up by 56 per cent from the year-ago period. Also, the new 2017-18 kharif crop, which is being harvested, is expected to be less owing to fall in acreage.