The government issued a notification on Saturday and set the minimum export price (MEP) for onions at $800 per metric tonne. The mandate stated that the price will be effective from October 29, 2023 to December 31, 2023.
This decision has been taken to ensure sufficient availability of onion for domestic consumers and keep the prices for the produce at affordable levels, the notification revealed. The government further stated that the quantity of rabi 2023 onions in storage has been declining. A MEP of $800 per MT directly means a price of around Rs 67 per kg for the produce.
In addition to fixing the MEP on onion exports, the government also said that it will procure an additional stock of 2 lakh onions for the buffer. This stock will be over and above the 5 lakh tonnes of onions already procured from the market.
This is not the first time this year that the government has increased the buffer limit for onions in stock. Earlier in August this year, the government imposed a 40 per cent duty on onion exports to maintain a check on domestic availability and market prices. This decision was followed by the centre announcing that it will procure a surplus 2 lakh tonnes of onions in the buffer stock, increasing the limit of the stock to 5 lakh tonne, from the earlier limit of 3 lakh tonne.
Onion prices, however, have been on the rise ever since and have started touching the sky in October. The first two weeks of October witnessed the average wholesale price of onions in the key Lasalgaon APMC in Maharashtra increase more than 60 per cent.
This surge in prices has been credited to the lack of supply in the domestic market. Experts further believe that onion prices will stay on the higher end till December when the fresh stock hits the market. The supply of onions this year has been affected by reduced sowing of the crop and lack of rainfall in certain parts of the country.
Also Read : Onion Price Hike: Wholesale Rates Increase 60% In Two Weeks On Dwindling Supply