The government has hiked the Minimum Export Price (MEP) of onions sharply by $275 per tonne to $700 per tonne. This step has been taken to curb shipments and boost domestic supply to control spiraling retail prices that have touched up to Rs 80 per kg. The prices of onions at both wholesale and retail levels have been rising on lower output due to unseasonal rains earlier.
The government is keeping a close watch on onion prices and has floated a tender for import of 10,000 tonnes of onions, which will be opened on August 27. The consumer affairs secretary will also take stock of the situation with agencies SFAC, NAFED, MMTC and the Delhi government on August 24.
Further, wholesale onion prices have touched Rs 57 per kg at Lasalgaon in Maharashtra, Asia’s biggest edible bulb market, which could further spike retail prices in coming days.