| Date: |
26-08-2015 |
| Subject: |
Commerce Ministry increases onion MEP to $700 per tonne |
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NEW DELHI: The Commerce Ministry has hiked the minimum export price (MEP) of onions by $275 per tonne to $700 per tonne to ensure adequate domestic supply and contain price rise.
"Export of all varieties of onions... will be subject to an MEP of $700 FOB (free on board) per MT (tonnes)," the Directorate General of Foreign Trade (DGFT) said in a notification dated August 24.
On August 22, the government had announced the rise in minimum export price of onions sharply to $700 per tonne to curb shipments and boost domestic supply to control spiraling retail prices.
The decision was taken as prices of onions at both wholesale and retail levels were rising on lower output due to unseasonal rains earlier.
MEP is the rate below which no exports are allowed. The rise in MEP restricts exports and improves domestic supply.
Wholesale prices of onion today fell below the Rs 50 per kg mark at Lasalgaon in Maharashtra, Asia's biggest onion market, due to curbs on exports and fear of action against hoarding.
Even at Azadpur mandi in Delhi, wholesale onion price declined Rs 3-5 per kg to Rs 53 today on increase in arrival of new crop from Karnataka and Andhra Pradesh.
However, retail onion prices across the country continue to rule as high as Rs 80 per kg.
The export price was last raised to $425 per tonne from $250 on June 26.
Onion exports fell to 10.86 lakh tonnes in 2014-15, from 13.58 lakh tonnes in the previous year.
Source : economictimes.indiatimes.com
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