Government of India’s decision to impose Minimum Export Price of USD 800/ton on Onion with effect from 29th October 2023 till 31st December 2023 to discourage exports and maintain availability in domestic markets has shown an immediate impact of price correction in Maharashtra markets, where prices recorded a decline of 5% to 9% from the highest price registered during last week, according to a press release from the Ministry of Consumer Affairs. The weighted average onion price in Maharashtra fell by 4.5%, with similar declines observed in other consumption centers, as per the press release.
The Department of Consumer Affairs is monitoring Onion exports and prices on daily basis to ensure stable domestic prices and availability to consumers. In view of increasing demand in the month of November, Department has started releasing Onion Buffer stock into the market both through mandi sale and discounted sale to retail consumers at centers of high prices. This includes retail sale through 685 Mobile retail outlets covering over 170 cities. NAFED and NCCF have also started procuring additional 2 LMT onion of kharif harvest to be distributed in high price centers to keep the onion prices under control and consumers interest is protected.
The Centre on Saturday imposed a Minimum Export Price (MEP) of USD 800 per ton on onions, effective from October 29, 2023, until December 31, 2023. This action is intended to discourage onion exports and maintain a consistent supply within the domestic market. The MEP translates to roughly Rs 67 per kilogram and applies to all onion varieties except Bangalore Rose and Krishnapuram onions, as well as cut, sliced, or broken onions in powdered forms.
However, another government data reveals that onion prices have continued to remain high in the national capital, New Delhi, with an average retail price of Rs 78 per kilogram. The all-India average price for onions is around Rs 50.35 per kilogram, with the maximum rate reaching Rs 83 per kilogram and the modal price at Rs 60 per kilogram. The minimum price for onions stands at Rs 17 per kilogram. Local vendors in Delhi are selling onions at Rs 80 per kilogram, while e-commerce platforms like Bigbasket and Otipy offer onions at Rs 75 per kilogram.
To further secure the availability of onions in the domestic market, the government has announced its plans to procure an additional 2 lakh metric tonnes of onions for the buffer stock. This is in addition to the 5 lakh metric tonnes already procured.
