Onion Export Price Raised by USD 25/tonne.

New Delhi, Aug 24 (PTI) The government today raised the export price of onion by USD 25 to USD 300 a tonne, for the second time in a month, in order to discourage shipments and check prices of the commodity in the retail market.

"Minimum Export price (MEP) of onions other than Bangalore Rose onions and Krishnapuram onions will be USD 300 per tonne," the Directorate General of Foreign Trade (DGFT) said in a notification.

On August 12, it was increased to USD 275 per tonne.
However, the MEP of two superior varieties -- Krishnapuram onions and Bangalore Rose onions -- would continue to be USD USD 400 per tonne.

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.

Food inflation was hovering at 9.03 for the week ended August 6 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.
In December last year, the government had imposed a ban on onion exports after its prices had skyrocketed to Rs 80-85 per kg in the retail markets across the country. The export ban was lifted in February this year after the costs eased.

While opening export, the MEP of onions was fixed at USD 600 per tonne. In subsequent months, MEP was revised downwards several times to USD 170 per tonne level.

With prices again inching upwards, the government has increased MEP three times since June to tame prices, and now it stands at USD 300 per tonne.

Onion, which was selling at Rs 10 a kg a month back, soared to Rs 15 per kg last week before touching Rs 20 a kg in the Delhi and NCR, traders said.

India produced over 14 million tonnes of onion in the 2010-11 season.
The exports dropped by over 31 per cent in 2010-11 at 12.89 million tonnes as against the year-ago period.

Source : news.in.msn.com