The government announces a $80-per-metric-tonne minimum export price for onions

With effect from October 29 to December 31, 2023, the government announced on Saturday that the minimum export price (MEP) for onions will be $800 per metric tonne.

The action was designed to prevent the number of stored Rabi 2023 onions from decreasing by limiting the amount of onions exported, so ensuring an adequate supply of onions for local customers at reasonable rates.

The MEP of $800 per metric tonne is equivalent to around 67 rupees per kilogram.

The government has declared that it would purchase an extra 2 lakh tonnes of onions for the buffer, on top of the 5 lakh tonnes that it has already purchased, in addition to the decision to impose MEP on onion exports.

Since the second week of August, onions from the buffer have been regularly disposed of in the nation’s key consumption centers. They are also sold to retail customers at a cost of Rs 25 per kg via mobile vans run by NCCF and NAFED.

Approximately 1.70 lakh metric tons of onions have been removed from the buffer so far.

In order to maintain fair prices for onion growers and to temper consumer prices, the buffer’s onions are continuously purchased and disposed of.