The Minimum Export Price (MEP) of onion has been increased sharply by $175 per tonne to $425 per tonne, as per information provided by Directorate General of Foreign Trade (DGFT). This step has been taken by the government in order to ensure adequate domestic supply and contain price rise. The new MEP - rates below which no exports are allowed - will be applicable with immediate effect. The government imposes MEP to restrict outbound shipments and check price rise in the domestic market.
During last one month, the wholesale price of onions at Lasalgaon in Maharashtra, Asia’s biggest onion market, has risen to Rs 16-17 per Kg from Rs 11 per kg. The wholesale prices have started increasing in view of marginal fall in the domestic production, which is estimated at 189.23 lakh tonnes (LT) for 2014-15 crop year (July-June), as against 194 LT in the previous year.
The country’s onion exports declined to 10.86 LT in the 2014-15 fiscal as against 13.58 LT in the previous year, due to high MEP.