India abolishes onion Minimum Export Price as bumper crop led to sharp fall in domestic prices

India abolishes onion Minimum Export Price as bumper crop led to sharp fall in domestic prices

India abolishes onion Minimum Export Price as bumper crop led to sharp fall in domestic prices
Our bureau
New Delhi, Feb 7:

For giving boost to exports and put a curb on falling domestic prices, the government has abolished the Minimum Exports Price (MEP) of onion.

“Requirement of MEP on export of onions stands removed,” Directorate General of Foreign Trade (DGFT) said in a notification on Tuesday evening

In December 2013, the MEP was reduced to $ 150 per tonne.

The government had imposed higher MEP on onion in September 2013 at $ 900 per tonne and then it was hiked to $ 1100 per tonne subsequently for putting a curb on exports and boost domestic supplies as retail prices had rose to as high as Rs 100 per kg in major parts of the country.

Sharp fall in onion prices in the last one month due to heavy kharif arrival across the key mandis have led to removal of MEP. The retail price currently ranged between Rs 15—20 per kg in the key cities.

The wholesale prices of onion is ruling around Rs 500 to Rs 600 per quintal at present.

With wholesale prices declining sharply due to bumper crop, farmers in producing states like Maharashtra have been protesting with demand for removal of export restrictions.

Onion production has risen from below 5.5 million tonne till 2002-03 to above 15 million tonne in the last three years. The production is expected to be more than 18 mt during 2013-14 and in the current fiscal, the country has exported 1.82 mt of onion.

The country has witnessed annual growth rate of 13.36% in onion production during last 13 years since 2000-01. No other food crop in India shows this type of spectacular growth in the recent years.

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