Zee Media Bureau


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

New Delhi: Keeping in view of sharp decline in wholesale prices in major producing and consuming mandies along with huge arrivals,  the Narendra Modi government has decided to scrap the minimum export price (MEP) on onions.


The move is also expected to encourage exports of onions.


"All varieties of onions... can be exported without any MEP," Directorate General of Foreign Trade (DGFT) said in a notification.


MEP is the rate below which no trader is allowed to export. The rise in MEP restricts exports and improves domestic supply.


In August, the government had hiked onion MEP to USD 700 per tonne, from USD 425, as prices at both wholesale and retail levels skyrocketed on lower output due to unseasonal rains.


Also earlier this month, the government had slashed the minimum export price (MEP) on onions to USD 400 per tonne from USD 700 to encourage outbound shipments of the commodity.


The Maharashtra government had recently asked the Centre to scrap the minimum export price for onions to help boost overseas shipments after wholesale prices of the bulb went down to the Rs 10 per kg level.


According to the National Horticultural Research and Development Foundation (NHRDF) data, wholesale prices are ruling at Rs 10-14 per kg at Asia's biggest wholesale market for onion at Lasalgaon in Maharashtra, much lower than its peak of Rs 57 per kg in August.


Later in an official statement, the Commerce Ministry said the government reviewed the Minimum Export Price (MEP) of onion Wednesday.


"Keeping in view of sharp decline in wholesale prices of onion in producing mandies of Maharashtra and major consuming mandies and huge arrivals of onion, the government decided to reduce the MEP to 'Zero' from USD 400 per tonne," it said.


In a tweet, Commerce and Industry Minister Nirmala Sitharaman said: "Notification issued by the DGFT removing the minimum export price for onion exports will help farmers realise better price".


In another tweet, Transport Minister Nitin Gadkari said, "Welcome Ministry of Commerce & Industry decision on removing MEP for onions. This would help onion growers in this hour of need."


With Agency Inputs