Government imposes MEP of $800 per metric tonnes on onion export till December 31

31 Oct 2023 Evaluate

The government has imposed Minimum Export Price (MEP) of $800 per metric tonnes (MT), FOB basis, on onion export till December 31, 2023. The decision came into effect from October 29, 2023. The MEP of $800 per MT translates into about Rs 67/kg. The step will help in maintaining sufficient availability of onion to domestic consumers at affordable prices as the quantity of stored Rabi 2023 onion is declining by curbing the quantity of onion exports.

Besides, the government has also announced the procurement of additional 2 lakh tonnes of onion for the buffer, over and above the 5 lakh tonnes already procured. Onion from the buffer has been disposed continuously from the second week of August in major consumption centres all over the country, and also supplied to retail consumers at Rs 25/kg through mobile vans operated by The National Cooperative Consumers Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED).

Till date about 1.70 lakh MT of onion has been disposed from the buffer. The continuous procurement and disposal of onion from the buffer are undertaken to moderate the prices for consumers while ensuring remunerative prices to the onion farmers. The decision to impose the MEP of $800 per MT shows the determination of the Government to keep onion affordable to the domestic consumers.

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