New Delhi: The government on Friday scrapped a minimum price threshold for onion exports with a view to enhancing the income of Indian farmers.
The government had previously fixed a USD 550 per tonne as the minimum export price (MEP), which essentially meant that farmers could not sell their produce overseas at lower than this rate.
A DGFT notification issued on Friday removed the MEP with immediate effect.
The move comes ahead of assembly elections in Maharashtra, a key onion-producing state.
The move would help promote exports of the commodity.
“The Minimum Export Price (MEP) condition on the Export of onions is removed with immediate effect and until further orders,” the Directorate General of Foreign Trade (DGFT) said in the notification.
The decision to remove the MEP on onion has been taken despite the high retail prices of this key kitchen staple.
According to the data compiled by the Department of Consumer Affairs, the all-India average price of onion on Friday was Rs 50.83 per kg, while the modal price is Rs 50 per kg. The maximum price of onion is Rs 83 per kg, and the lowest is Rs 28 per kg.
On September 5, the Centre began the first phase of retail sales of onion at a subsidised rate of Rs 35 per kg to provide relief to Delhi-NCR and Mumbai consumers from rising prices of the kitchen staple.
National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (Nafed), which are maintaining a buffer stock of 4.7 lakh tonne onion on behalf of the government, have started retail sales through their stores and mobile vans.
Last week, Consumer Affairs Secretary Nidhi Khare noted that the outlook for onion availability and prices in coming months remains positive as the kharif (summer) sown area has increased sharply to 2.9 lakh hectares till last month against 1.94 lakh hectares in the year-ago period.
Further, about 38 lakh tonnes of onion are reported to be still in storage with farmers and traders, she had said.
