India restricts Onion export by imposing MEP at $850 a ton

Minimum export price (MEP) is the minimum rate below which exports are not allowed was eliminated from Onion in December 2015 and has reintroduced by the government at USD 850 per tonne to increase domestic supplies and check rising prices.

Supplies got exhausted as large quantity of exports were undertaken in the first four months of the current fiscal. The country exported 1.2 million tonnes in April-July of this fiscal, up by 56 per cent from the year-ago period.

Export of Onion shall be permitted only on Letter of Credit (LC) subject to a MEP of USD 850 per tonne till December 31, 2017." the Directorate General of Foreign Trade (DGFT) said.

The government has asked state-run MMTC to import 2,000 tonnes of Onion, while other agencies Nafed and SFAC to buy Onions locally and supply in consuming areas.

Food Minister Ram Vilas Paswan seeks curbs on onion export to keep prices in control

Union Food Minister Ram Vilas Paswan said that he has asked Commerce Ministry to withdraw the incentive and impose higher minimum export price (MEP) on onion export to ensure adequate availability in the domestic market, which will help keeping prices in control.

"Commerce Ministry has been requested to withdraw the incentive on export of onion for adequate availability of onion for domestic consumption (It) has been requested for imposition of MEP of USD 450/ MT on onion in order to keep the prices of onion under control," he said in a tweet on Friday.

Poduction of onion this year is about 215 lakh tonnes while it was 209 lakh tonnes last year, said Paswan, while blaming hoarders and middlemen for the hike in the price of onion.