Onion Price Hike: In an effort to boost the availability of onions in the domestic market and control soaring prices, the government has imposed a Minimum Export Price (MEP) of $800 per tonne on onion exports until December 31, 2023. The Directorate General of Foreign Trade announced this measure to counter the rising onion prices, which have reached Rs 65-80 per kilogram in the retail market in some areas.
Government Imposes Minimum Export Price (MEP) on Onions to Stabilize Domestic Market
Several retailers, including Mother Dairy and e-commerce platforms like Bigbasket and Otipy, are selling onions at higher prices due to reduced supplies. The imposition of MEP at $800 per MT roughly translates to a price of around Rs 67 per kilogram for the vegetable. This decision aims to ensure that an adequate supply of onions is available to domestic consumers at affordable rates.
Government also revealed that the storage quantity of rabi 2023 onions has been decreasing
The government also revealed that the storage quantity of rabi 2023 onions has been decreasing. In addition to fixing the MEP, the government plans to procure an extra stock of 2 lakh tonnes of onions for the buffer. This is in addition to the 5 lakh tonnes of onions already procured from the market. It’s worth noting that this isn’t the first time this year that the government has taken such measures. In August, a 40 percent duty was imposed on onion exports, accompanied by the announcement of additional onion procurement to maintain a check on domestic availability and market prices. This increased the buffer stock limit from 3 lakh tonnes to 5 lakh tonnes.
These measures are part of the government’s strategy to ensure a stable onion supply in the domestic market, especially considering the fluctuating onion prices and their significance in Indian cuisine.
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