India: Onion Export Price Hiked To Check Soaring Cost.

The government has raised the export price of onion by $45 per tonne to $275 a tonne in order to check prices which have doubled in the last one month in the retail market and are currently ruling at Rs 20 per kg.

The Minimum Export Price (MEP) of two superior varieties -- Krishnapuram onions and Bangalore Rose onions -- has been increased by $ 50 per tonne to $ 400 per tonne. These two South Indian varieties were spared from the hike last time in July.

“MEP of Bangalore Rose onions and Krishnapuram onions will be $ 400 per tonne... (and) MEP of onions other than Bangalore Rose onions and Krishnapuram onions will be $ 275 per tonne,” the Directorate General of Foreign Trade (DGFT) said in a notification.

The onion MEP has been raised to discourage exports and boost the domestic supply, a senior government official said.

The decision comes in the backdrop of rising onion prices, which were stable during April-June period and had even fallen to Rs 10 per kg level in the retail markets.

The government seems to be worried also about high food inflation, which surged to a four-and-half month high of 9.9 per cent for the week ended July 30, due to costlier onions, fruits, vegetables and protein-based items.

The onion prices went up by 36.62 per cent year-on-year, as per wholesale-based inflation data.

Source : freshplaza.com