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With onion prices continuing to be a worry for consumers, the Centre has raised the minimum export price (MEP) of the bulb to $700 per tonne. The MEP was last increased on June 26 this year to $425/tonne from $250/tonne.
An official statement released by the Food and Consumer Affairs Ministry also said that the tender floated for onion imports will be opened on August 27. The Government had directed MMTC Ltd. to float a tender for the import of 10,000 tonnes of onions last week.
“Government of India has been keeping a close watch on the rise in prices of onions. A decision has been taken … to import onions and a tender has also been floated for 10,000 MT (metric tonnes) of onions which will be opened on 27th August, 2015,” the statement said.
“To increase the availability of onions in domestic market, it has been decided to raise minimum export price further to US$700 per MT,” it added.
Prices of the kitchen staple have been rising due to a decline in production to 18.92 million tonnes (mt) in 2014-15 from 19.04 mt the year before due to inclement weather conditions.
The Ministry also informed that the Small Farmers’ Agribusiness Consortium (SFAC) and the National Agricultural Cooperative Marketing Federation of India (Nafed) had procured 5.857 tonnes of onions funded out of the price stabilization fund.
The SFAC has procured 2,511 tonnes separately for Delhi and is supplying the bulb at Rs 30.50/kg to Safal stores and being retailed for Rs 39/kg.
Consumers could also buy onions for Rs 35/kg from 120 Delhi Milk Scheme (DMS) booths. Prices at 280 fair price shops have been reduced to Rs 30/kg from August 12.
The Centre had earlier amended the Essential Commodities Act, 1955, on July 1 to enable States and Union Territories to impose stock limits on onions for a period of year i.e. up to July 2, 2016.
“A meeting is again being held by Secretary (Consumer Affairs) on 24th August, 2015 with SFAC, Nafed, Department of Commerce, Ministry of Agriculture and Govt. of Delhi to review the action taken to keep prices of onions in check,” the statement said.
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