Centre Imposes Minimum Export Price Of USD 800 Per Tonne On Onion Till December 31 To Control Prices
The Indian government has imposed a minimum export price (MEP) of USD 800 per tonne on onions till December 31, 2023, to control domestic prices. The MEP is the lowest price at which an onion exporter can sell onions overseas. The move comes amid reports of rising onion prices in India
Onion price hike: The central government has imposed a Minimum Export Price of USD 800 per tonne On Onion Till December 31 to control prices. The Center had earlier imposed a 40% export duty on onion exports until December 31, 2023. This is an attempt to control the rising prices of onions in the country. The notification was issued by the Ministry of Finance on Saturday, August 19, 2023.
The center has decided to procure an additional 2 lakh tons of onion for the buffer, over and above the 5 lakh tons already procured by the Ministry of Consumer Affairs, Food, and Public Distribution.
The export duty is expected to raise the prices of onions in the domestic market. However, the government hopes that this will help to improve the availability of onions and bring down prices in the long run. The export duty is a temporary measure and will be lifted once the prices of onions stabilize.
Reasons Behind Sudden Rise In Price
The sudden increase in onion prices after the Navratri festival has surprised both consumers and vendors. Onions were being sold at Rs 40–50 per kg in the retail markets just one week ago; however, now the prices are going higher every day.
Government data as of October 25 suggests that the maximum retail price of onions has surged to around Rs 70 per kilogram, and this upward trend is expected to continue until December, when the kharif crop becomes available in the market.
Data from the Department of Consumer Affairs reveals that the average wholesale price of onions as of October 26 has reached Rs 3,112.6 per quintal, a significant increase from Rs 2,506.62 per quintal on October 1.
Current Onion Prices In Delhi NCR
Onions are currently selling for Rs 75-80 per kilogram in Noida, Uttar Pradesh, and Rs 80 per kilogram in Greater Noida. The price has also reached Rs 80 per kilogram in Rajouri Garden, Delhi. In Navi Mumbai, the price of onions surged from Rs 60 per kilogram on Friday to Rs 80 per kilogram on Saturday.
An official from the Ministry of Consumer Affairs told various media outlets that the price hike of onions is due to the delayed arrival of fresh harvests from major onion-producing states like Maharashtra and Madhya Pradesh, a report in ET Now said.
Onion prices in Delhi have doubled in the past two weeks, reaching ₹80 per kilogram in retail markets. In Lasalgaon, Maharashtra, India’s onion trade hub, benchmark prices have also increased by 58% in two weeks, to ₹38 per kilogram. Average prices in key onion-growing districts of Maharashtra range from ₹45 to ₹48 per kilogram, as per a report in Livemint.
