Govt set to impose $650 per tonne minimum export price on onion exports

Aug 14 2013, 19:25 IST
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SummaryNAFED has suggested to the Commerce Ministry to fix MEP at around $650-700 per tonne.

Worried over spiralling onion prices, the government is likely to impose a minimum export price (MEP) of $650 per tonne on the commodity to curb shipments and control prices.

Related: Onion costs Rs 80/kg, prices expected to cool next month only

In May last year, the government had scrapped fixing MEP, which is a benchmark price below which onion could not be exported.

According to sources, an inter-ministerial meeting was held today to take stock of the situation and find ways to control onion prices, which have soared up to Rs 80 per kg in the major cities of the country.

Also read: Pricey onions leave buyers teary-eyed

Corporative major NAFED has suggested to the Commerce Ministry to fix MEP at around USD 650-700 per tonne and explore ways to facilitate imports of good quality onion.

"The outcome and suggestions of the meeting would be placed before the Commerce Minister who will take the final call on the matter," sources added.

Wholesale price of onion have increased in the Lasalgaon market in Nasik by Rs 1 per kg to Rs 46 and by Rs 5 to Rs 50-55 per kg in Delhi's Azadpur mandi.

India has exported 6.39 lakh tonnes during April-July period of this fiscal compared with 6.94 lakh tonnes in the year-ago period. Production stood at 16.6 million tonnes in 2012-13.

Maharashtra, Karnataka and Gujarat are the main producing regions of the kitchen staple.

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