New Delhi: The government said on Thursday the minimum export price (MEP) of onions to USD 400 per tonne from USD 700 a tonne.
“On Onion — judgment taken today to lower the Minimum Export Price (MEP) of onion from USD 700 tonne to USD 400 a tonne,” Commerce Minister Nirmala Sitharaman tweeted. MEP is the rate below which no traders are allowed to export. The rise in MEP restrict exports and be corrected domestic supply.
The Minister added that an Inter Ministerial Group (IMG) shall review the incoming of the kitchen staple in mandis and their prices, every two weeks.
Finance Minister Arun Jaitley chaired the meeting. It was also be present by Agriculture Minister Radha Mohan Singh and Sitharaman. Detailed periodic notice will be kept up.
The government had hiked onion MEP to USD 700 per tonne, from USD 425, as prices at both wholesale and retail level were skyrocketing on reduce output due to unseasonal rains.
However, earlier this week Maharashtra government had asked the Centre to scrap the MEP for onions to help boost exotic shipments after wholesale prices of the bulb went down to the Rs. 10 per kg level.
National Horticultural study and Development Foundation (NHRDF) data, wholesale onion prices are ruling at Rs. 10-14 per kg at Asia’s bigger wholesale market for onion, Lasalgaon in Maharashtra, much reduce than its peak Rs. 57 per kg in August.