On Saturday, the government announced a minimum export price (MEP) of $800 per metric tonne for onion exports, effective from October 29 through December 31, 2023.
The measure has been taken to address the declining quantity of stored Rabi 2023 onions and to ensure an adequate supply of onions to local consumers at reasonable prices. This has been achieved by reducing the volume of onion exports.
The MEP of $800 per metric tonne equates to roughly INR 67 per kg.
In addition to the imposition of MEP on onion exports, the government has declared the acquisition of an extra 200,000 tonnes of onions for the buffer stock, in addition to the 500,000 tonnes already procured.
Onions from the buffer stock have been consistently distributed since the second week of August in key consumption centers across the nation. Additionally, they have been made available to retail consumers at INR 25 per kg through mobile vans operated by NCCF and NAFED.
Till date about 1.70 lakh metric tonne of onion has been disposed from the buffer.
The ongoing acquisition and distribution of onions from the buffer stock aim to stabilize prices for consumers while also ensuring fair returns to onion farmers.