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The Centre is mulling over re-imposing a minimum export price (MEP) of $700-800 per tonne on onion to curb exports and check local prices, a government source said.
MEP is the minimum rate below which export is not allowed. Onion MEP was scrapped in December 2015.
In a meeting called by the Commerce Ministry, the MEP issue was discussed in detail with exporters and other stakeholders besides officials of Consumer Affairs Ministry.
Retail onion prices, which have shot up to ₹50-65 per kg in most cities at present, have come under pressure due to tight domestic supplies.
Supplies got exhausted as large quantity of exports were undertaken in the first four months of this fiscal. The country exported 12.29 lakh tonnes in April-July of this fiscal — up 56 per cent from the year-ago period.
Also, the new 2017-18 kharif crop is expected to be less owing to fall in acreage.
It may be noted that 40 per cent of the country’s total onion crop is produced in the kharif season, and the rest during the rabi season. The kharif crop, however, cannot be stored.
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