Minimum export price of $ 850 per ton fixed for onion export

To curb the rising prices of onion, the government has fixed its minimum export price at $ 850 per ton. This will help in reducing onion exports and there will be some relief in prices due to increased availability in the domestic market. In the national capital, onion prices have risen to Rs 40- 50 per kg in the last few days. A few days ago it was Rs 20-30 per kg. Once the Minimum Export Price (MEP) is fixed, the commodity cannot be exported at a lower price.

The Directorate General of Foreign Trade (DGFT) said in a notification, "Export of all varieties of onion ... Export will be allowed only under a letter of credit as per the minimum export value of USD 850 per ton (shipment value) until further order. The central government disrupted the supply of this important vegetable last month due to floods in major onion producing states - Maharashtra and parts of Karnataka. Besides hoarding of onions between One fears warned of strict action.

Some parts of major onion-producing states, including Maharashtra and Karnataka, are in the grip of floods, raising fears of supply disruptions. It has been decided to set the retail price limit of Rs 23.90 per kg (grade-A variety) at the successful sale center of Mother Dairy. Retail inflation raise to 3.21 percent in August, from 3.15 percent in July, mainly due to food prices being expensive. The country exports an average of 1.5 million tonnes of onions every year. India produces about 17–18 million tonnes of onions every year.