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.
Why Govt Sets minimum Onion Export Price to $800/Tonne?
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.
In a concerted effort to stabilize onion prices and ensure accessibility to consumers, onions from the buffer stock have been consistently distributed. Since the second week of August, these onions have been actively dispensed across key consumption centers nationwide. Moreover, to enhance accessibility, retail consumers have been provided access to these onions at an affordable price of INR 25 per kg. This initiative has been facilitated through the operation of mobile vans managed by the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
Check related articles here: IPO-bound OYO records 34% decrease, reaching INR 1,286 Cr in FY23!
Till date about 1.70 lakh metric tonne of onion has been disposed from the buffer.
This ongoing process of acquiring and distributing onions from the buffer stock stands as a testament to the government’s commitment to ensuring stabilized prices for consumers. Simultaneously, it endeavors to secure equitable returns for onion farmers, establishing a harmonious balance in the onion market landscape.
