Centre sets floor price for export of onions
The Centre on Thursday imposed a minimum export price (MEP) of $850 per metric tonne on onion till the end of 2017, in a bid to boost domestic supplies and prevent an increase in the price of the widely used vegetable.
MEP is the minimum rate below which export of an item is not permitted. The move comes two years after the MEP on onion was removed in December 2015.
The Directorate General of Foreign Trade (DGFT) said in a notification: “Export of onion... shall be permitted only on Letter of Credit (LC) subject to a MEP of $850 per tonne till December 31, 2017.” Export of all varieties of onions would be allowed only on LC, subject to the terms set in the notification.
Consumer Affairs Minister Ram Vilas Paswan had in August expressed concern over the rising prices of onion and demanded imposition of MEP on the commodity as well as the removal of export incentives.
Following pressure on supplies due to a rise in exports of the vegetable, retail onion prices had surged to ?50-65 per kg in many cities.
MMTC has been asked to import 2,000 tonnes of onion, while the Small Farmers’ Agri-business Consortium and Nafed have been asked to make domestic purchases and supply the vegetable in the consuming areas.
Onion exports during April-July rose 56% from a year earlier to 1.2 million tonnes. Due to a 30% decline in the area under cultivation, output of the 2017-18 kharif crop, being harvested, is likely to be 10% less, an official in the consumer affairs ministry, who did not wish to be named, said.
Source:- Thehindu.com
