The government on Thursday hiked the minimum export price (MEP) of onion to $900 per tonne to curb rising prices of the key vegetable.
“Exports of onion...shall be subject to an MEP of $900 per tonne,” the directorate general of foreign trade (DGFT) said in a statement.
Last month, the government had imposed MEP of $650 a tonne on onions. Due to higher MEP, the onion exports in August had come down by more than 87% compared to the corresponding period of last year to only 29,000 tonnes.
Meanwhile, an official with the consumer affairs ministry said that the government is keeping a close watch on the price situation. “We have taken several measures to improve supplies, including through imports,” the official said.
The Centre has also directed all state governments to crack down on hoarders and speculators who are keeping onion prices artificially high.
Onion prices have risen sharply across the country during the last one month.