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Maharashtra government demands removal of MEP on onions

10 Dec 2015 Evaluate

The Maharashtra government has demanded removal of MEP on onions in order to encourage exports which would protect interest of farmers. The state government has written to the Union Agriculture Ministry to help boost overseas shipments. The wholesale onion prices are currently ruling at Rs 10-14 per kg at Lasalgaon in Maharashtra, Asia’s biggest wholesale market for onion, much lower than its peak of Rs 57 per kg in August, as per data compiled by the National Horticultural Research and Development Foundation (NHRDF).

The government had earlier hiked Minimum Export Price (MEP) of onions to $700 per tonne in August from $425, as prices at both wholesale and retail levels were skyrocketing on lower output due to unseasonal rains earlier. MEP is the rate below which no exports are allowed. The rise in MEP restricts exports and improves domestic supply.

During May-August this year, the exports of onions stood at 459,097 tonnes. The overseas sale did not take place from September onwards after increase in the MEP to $700 a tonne.


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