Centre cuts onion minimum export price by 43%

The government on Thursday slashed the minimum export price (MEP) of onions to $400 per tonne from $700 a tonne. “On Onion -- decision taken today to reduce the Minimum Export Price (MEP) of onion from $700 tonne to $400 a tonne,” Commerce Minister Nirmala Sitharaman tweeted.

Minimum export price is the rate below which no traders are allowed to export. The rise in minimum export price restrict exports and improves domestic supply. 

The Minister added that an Inter Ministerial Group (IMG) shall review the arrivals of the kitchen staple in mandis and their prices, every two weeks.

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