PUNE: Falling onion prices in the domestic market have prompted the state government and the exporters to urge the Union government to encourage export of the commodity by slashing the minimum export price (MEP) from $250 per tonne to $150 per tonne.
The MEP also makes Indian onion costlier in international markets compared to onion from other countries, hence there are no buyers. Also, the importers in foreign markets keep a tab on domestic market rates in countries from where they are importing and too big a difference in domestic rates and MEP discourages the buyers. Compared to Rs 300 per quintal price of onion in domestic wholesale market, the MEP of $250 is very high, said a senior official of the Bombay Exporters Association.
Source : timesofindia.indiatimes.com