The government has reduced the Minimum Export Price (MEP) of onion, the floor price below which exports are not allowed, by $150 per tonne with prices of the kitchen staple moderating. As per the commerce ministry, the MEP for onion has been reduced to $700 per tonne from $850 fixed in November.
The MEP of $850 was applicable till January 20. As per the Price Monitoring Cell of the Department of Consumer Affairs, retail onion prices are ruling at about Rs 40 per kilogram in most cities.
Onion MEP was scrapped in December 2015 but brought back in November 2017. This was done with an aim to check rising prices which were ruling at Rs 50-65 per kg in most cities.