Govt. Slashes Minimum Export Price For Onions

The Indian government has brought down the minimum export price (MEP) for onions from USD 350 per tonne to USD 150 a tonne. This move is in order to boost shipments and check the fall in domestic prices, which had seen farmers protesting in various producing states for the removal of export restrictions. The decision came after a meeting between the Minister of Agriculture, Sharad Pawar and Minister of Commerce, Anand Sharma which took place on Wednesday, December 25.

"Export of all varieties of onions will be subject to a Minimum Export Price (MEP) of USD 150 per MT", the Director General of Foreign Trade (DGFT) said in a notification.

The wholesale prices in the Lasalgaon market of Maharashtra, which is Asia's largest onion market, has shown a quick drop from Rs 60 per kg in September to Rs 10 per kg, while the retail market rates have plunged from Rs 100 per kg to Rs 20-25 per kg. In a move to curb onion prices, the country even had to import onions, considering that it is an essential kitchen staple and also a politically sensitive commodity.

In an official statement, the government said that an inter-ministerial committee on onions would closely monitor arrivals, wholesale and retail prices in the country with a view to balancing the interests of both farmers as well as local consumers.