The government on Wednesday increased the minimum export price of onion by a sharp $175 per tonne to $475 a tonne — a move aimed at discouraging outbound shipments and controlling surging domestic retail prices of the kitchen staple.
Onion prices have gone up by Rs. 10 per kg in the last one-and-a-half months and it is being sold at Rs. 25 per kg in the national Capital.
In the wholesale price index, prices of onions jumped by over 57 per cent on an annual basis for the week ended August 20. It had significantly contributed to food inflation that crossed double digits (10.05 per cent) mark after five months.
“The minimum export price (MEP) of all varieties of onions, including Bangalore Rose Onions and Krishnapuram Onions will be USD 475 per tonne,” the Directorate General of Foreign Trade (DGFT), which comes under Commerce Ministry, said in a notification.
Earlier, the MEP was $300 per tonne for general category onion and $400 per tonne for premium varieties — Bangalore Rose onions and Krishnapuram onions.
The sharp rise in MEP is expected to discourage exports and augment domestic suppies.
On Tuesday, the government had decided to sell onions at Rs. 20 per kg through retail outlets of NAFED and NCCF in Delhi from September 12 to give relief to consumers.
