Cabinet slashes onion export price

New Delhi: The government on Wednesday reduced the minimum export price (MEP) of onion to $350 per tonne following improvement in domestic supply situation and softening of prices.

 

In June this year, the MEP on onion was re-introduced at $300 per tonne which was further raised to $500 per tonne in July this years as prices had continued to move upwards. “The minimum export price of onion has been brought down to $350 per tonne as its availability has increased,” telecom and law minister Ravi Shanker Prasad told reporters after a Cabinet meeting.

 

“When our government came in power we had increased the MEP of onion to $500 per tonne from $350 per tonne to make the exports less competitive,” he said. Onion prices were rising due to speculation amid anticipation of below normal monsoon despite sufficient supply in the country.

 

During June, the wholesale price of onion at Lasalgoan in Maharashtra, Asia’s largest onion market, had risen by about 80 per cent to Rs 18.50 per kg. At present, the rates are hovering around Rs 13-14 per kg at Lasalgoan.