Govt imposes minimum export price of $800 per tonne on onion till Dec 31
The decision by the government to impose a minimum export price (MEP) of $800 per tonne on onion exports until December 31 is aimed at ensuring an adequate supply of the vegetable in the domestic market and stabilizing prices. The Directorate General of Foreign Trade announced this measure in a notification, emphasizing the significance of maintaining a balance between domestic demand and exports.
By implementing this measure, the government intends to prevent excessive onion exports, which could potentially lead to a shortage of the vegetable within the country. The move is part of a broader strategy to address concerns about rising onion prices and ensure that an ample supply remains available for consumers in the local market.
This temporary imposition of the minimum export price serves as a mechanism to regulate the outflow of onions from the country and aims to stabilize the prices within India. The measure is expected to be in effect until the end of the current year, after which the government may review the situation and determine any necessary adjustments to the policy.
Such interventions reflect the government’s efforts to manage market dynamics and balance the needs of both domestic consumers and international trade, particularly in the context of essential commodities like onions, which hold significant importance in the Indian culinary landscape.
The continued rise in onion prices, reaching between Rs 65-80 per kilogramme in the retail market of the national capital, has become a matter of concern for consumers and the industry alike. With lower supply contributing to the price surge, consumers are grappling with the impact of these elevated costs on their daily expenses.
In response to the market dynamics, various retailers, including Mother Dairy with its Safal retail stores and e-commerce platforms such as Bigbasket and Otipy, have adjusted their prices accordingly, selling loose onions at rates ranging from Rs 67 to Rs 70 per kilogramme. Local vendors, in light of the scarcity, are reportedly selling onions at even higher rates, up to Rs 80 per kilogramme, which further exacerbates the financial burden on consumers.
The escalation of onion prices not only affects household budgets but also underscores the significance of implementing measures to stabilize prices and ensure an adequate supply of this essential commodity in the market. As the government has recently imposed a minimum export price (MEP) of $800 per tonne on onion exports until December 31, it is possible that these measures are being taken to alleviate the pressure on the domestic market and manage the fluctuating prices.
Efforts to balance supply and demand, along with measures to control the prices, remain critical in addressing the challenges posed by the volatile onion market, with the aim of providing relief to consumers and maintaining stability in the overall economy.
