Thursday, July 18, 2024
HomeNews ReportsUnion government sets minimum export price of $800 per metric tonne for onions amid...

Union government sets minimum export price of $800 per metric tonne for onions amid surging prices, to increase buffer

The minimum export price of USD 800 per MT for onions translates into about ₹67/kg, according to a statement issued by the ministry.

The Union Ministry of Consumer Affairs, Food & Public Distribution on 28 October notified a Minimum Export Price (MEP) of USD 800 per Metric Ton (MT) for the export of onions to ensure enough supply for the domestic market. The initiative comes against the backdrop of rising onion prices in the country.

The MEP on onion exports will come into effect on October 29 and will continue till December 31, 2023.

The measure has been taken to maintain sufficient availability of onion to domestic consumers at affordable prices as the quantity of stored rabi 2023 onion is declining by curbing the quantity of onion exports. The MEP of USD 800 per MT translates into about ₹67/kg, according to a statement issued by the ministry.

Along with the decision to impose MEP on onion exports, the Government has also announced the procurement of an additional 2 lakh tons of onion for the buffer, over and above the 5 lakh tons already procured.

The ministry added that onion from the buffer has been disposed of continuously from the second week of August in major consumption centres all over the country and also supplied to retail consumers at ₹25/kg through mobile vans operated by NCCF and NAFED.

To date, about 1.70 lakh Metric Tons of onion have been disposed of from the buffer. The continuous procurement and disposal of onion from the buffer are undertaken to moderate the prices for consumers while ensuring remunerative prices to the onion farmers, the statement said.

The ministry added that the decision to impose an MEP of USD 800 per MT shows the determination of the Government to keep onion affordable to domestic consumers.

Onion prices in the country have risen sharply over the last few days and are selling at ₹70-₹80 per kg in most markets, up from ₹30-₹40 just a couple of weeks ago. It has been anticipated that the price will hit ₹100 per kg by the first week of the next month.

Lower production of onion due to irregular rain and delayed harvest in major onion-producing regions has been attributed to the rise in its prices. Moreover, onion consumption increases during the festival season, which also contributes to the surge in prices.

Join OpIndia's official WhatsApp channel

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staff
OpIndia Staff
Staff reporter at OpIndia

Related Articles

Trending now

Recently Popular

- Advertisement -