Government reduces MEP of onions to $400 a tonne

The government has reduced the Minimum Export Price (MEP) of onion from $700 tonne to $400 a tonne. MEP is the rate below which no traders are allowed to export. The rise in MEP restricts exports and improves domestic supply. The Inter Ministerial Group (IMG) shall review the arrivals of the kitchen staple in mandis and their prices, every two weeks.

The Maharashtra government earlier this week had demanded removal of MEP on onions in order to encourage exports which would protect interest of farmers. The state government had 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).