Govt Announces Minimum Export Price for Onions to Ensure Domestic Affordability

In a bid to secure an adequate supply of onions for domestic consumers and maintain affordable prices, the Indian Government has issued a notification imposing a Minimum Export Price (MEP) of USD 800 per Metric Ton, FOB basis, on onion exports. The MEP will be effective from October 29, 2023, through December 31, 2023, and is set at approximately Rs. 67 per kilogram.

The decision to impose the MEP comes in response to the diminishing stocks of rabi 2023 onions, which are vital for meeting domestic demand. By curbing the quantity of onion exports, the government aims to stabilize prices and ensure that this essential commodity remains within reach for the country's consumers.

In addition to the MEP, the government has also announced plans to procure an additional 2 lakh tons of onions to bolster the buffer stock. This action is in addition to the 5 lakh tons of onions already procured. The buffer stock of onions has been systematically released to major consumption centers across India since the second week of August, with retail consumers being able to purchase them at a nominal cost of Rs. 25 per kilogram.

This has been made possible through mobile vans operated by the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED). To date, approximately 1.70 lakh Metric Tons of onions have been distributed from the buffer.

This ongoing procurement and distribution of onions from the buffer serve a dual purpose. They help stabilize onion prices for consumers, ensuring they remain affordable, while also ensuring that onion farmers receive fair and remunerative prices for their produce. This approach reflects the government's commitment to balancing the interests of consumers and farmers.

The imposition of the MEP at USD 800 per Metric Ton underscores the government's determination to make sure that onions, a staple in Indian households, continue to be accessible and affordable to the country's domestic consumers.