“Indian Government Enforces USD 800/tonne MEP to Tackle Surging Onion Prices”
In response to soaring onion prices and lower supply, the Indian government has set a Minimum Export Price of USD 800 per tonne for onion exports until December 31, 2023, aiming to stabilize domestic prices.
As onion prices continue to surge, reaching ₹65-80 per kilogram in the retail market of the national capital, the Indian government has taken decisive action to mitigate the situation. On Saturday, the Directorate General of Foreign Trade issued a notification imposing a Minimum Export Price (MEP) of USD 800 per tonne on onion exports. This MEP will remain in effect until December 31, 2023, with the primary goal of enhancing onion availability within the domestic market and curbing the relentless price hikes.
With the MEP set at USD 800 Free on Board (FOB) per tonne, the government seeks to ensure that a significant portion of India’s onion production remains accessible to its own consumers. This measure is expected to have a twofold effect: maintaining an adequate supply of onions in the domestic market and preventing excessive exports that could exacerbate the ongoing price crisis.
Onion prices have been a cause for concern, particularly in urban areas, where the retail cost has climbed to ₹65-80 per kilogram due to decreased supply. Mother Dairy, a prominent retail chain with approximately 400 Safal stores in the Delhi-National Capital Region (NCR), is now retailing loose onions at ₹67 per kilogram. E-commerce platforms like Bigbasket are selling onions at a similar rate, while Otipy is offering them at ₹70 per kilogram. Local vendors are charging even higher rates, with onions being sold at ₹80 per kilogram in certain areas.
The imposition of the MEP serves as a response to these surging prices and aims to provide relief to consumers who have been grappling with the burden of elevated onion costs. By discouraging excessive exports and encouraging greater onion availability within India, the government seeks to stabilize prices and ensure that this essential vegetable remains affordable for its citizens.
This move by the Indian government is indicative of its commitment to safeguarding the interests of the public by intervening in essential commodity markets when necessary. It is hoped that the imposition of the MEP will help in bringing down onion prices and ease the financial strain on households that rely on this staple in their daily meals. The government’s proactive approach also underlines the importance of maintaining a delicate balance between export-oriented agriculture and domestic food security.
Sources By Agencies
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