Minimum export price of onion reduced to $800 per tonne

NEW DELHI: The government today reduced the minimum export price ( MEP) for onion to $800 per tonne from $1,150 per tonne earlier.

"Export of all varieties of onions ...will be subject to a MEP of $800 per tonne," Director General of Foreign Trade said in a notification.

According to an official, reduction in onion MEP was due to moderation in the prices of the bulb in domestic market.

Earlier, the Centre had hiked onion MEP to $1,150 a tonne in order to boost its domestic supplies and control rising prices that had skyrocketed to around Rs 100 per kg. At present, onion prices are hovering at around Rs 40 per kg.

Due to hike in MEP, onion exports were came down. In August, it had come down substantially to 29,000 tonne.

The government has been keeping a close watch on the price situation and has taken several measures to improve supplies including more imports.

The Centre had also directed all state governments to crack down on hoarders and speculators who are keeping onion prices artificially high.

Maharashtra, Karnataka and Gujarat are some of the main onion producing states.