To curb onion exports,minimum price hikedhttps://indianexpress.com/article/news-archive/web/to-curb-onion-exports-minimum-price-hiked/

To curb onion exports,minimum price hiked

The current MEP of $650 per metric ton was imposed on August 14.

With wholesale and retail price of onions rising sharply,the government today increased minimum export price (MEP) to $900 per metric ton,up $250 per metric ton,to curb export.

“Export of onion…classification of export and import items shall be permitted subject to a minimum export price of $900 per metric ton or as notified by DGFT from time to time,” the government said in a notification.

The current MEP of $650 per metric ton was imposed on August 14. After the MEP was imposed,onion exports declined to 29,247 ton in August from 1,56,283 ton in the same month last year. In value terms too,export declined to Rs 125.46 crore from Rs 164.92 crore in the review period. During the April-August period this fiscal,onion exports fell to 6,97,028 ton against 8,50,634 ton in the year-ago period.

However,in value terms,the outbound shipments rose sharply to Rs 1,341 crore from Rs 844 crore in the said period. The government had abolished MEP in May 2012,allowing traders to take advantage of rising prices in global markets.

However,despite the measure,the retail price of onion has not softened,hovering at Rs 70-80 per kg in Delhi. The state government has announced it will again start selling the vegetable at Rs 60 a kg,at 1,000 points across the city through vans. The Centre has also asked all state governments to come down heavily on hoarders and speculators,who,it suspects,are keeping price of the vegetable artificially high.