The Government has increased the minimum export price on onions to $500 per tonne as the prices of onions in the domestic market continue to rise.
This means that onions, which are priced below Rs 30 per kg, will not be allowed to be exported from the country.
On June 17, an MEP of $300 per tonne was imposed on onions, but it had not helped to arrest the prices.
"The Inter-Ministerial Committee, at their meeting on June 30, observed that the wholesale and retail prices of onion are going up in producing and consuming mandies, and despite MEP at $300 per tonne, there is no appreciable decline in the exports of onion," the Commerce Ministry said in a press statement issued today.
Keeping in view the rising retail and wholesale prices and delayed monsoon, the committee has unanimously decided to fix the MEP at $500 per tonne, it added.
Wholesale prices
Onion prices have risen 40 per cent in the last two weeks to Rs 18.50 per kg at the country’s largest wholesale market in Lasalgaon, Nashik. In Delhi’s wholesale market, Azadpur, the prices are ruling at about Rs 20-25 per kg.
The rise in prices is partly due to hoarding as there are speculations that a weak monsoon would affect the kharif crops.