Government has also announced the procurement of additional 2 lakh tons of onion for the buffer, over and above the 5 lakh tons already procured.
The Government on October 28, 2023, notified Minimum Export Price (MEP) of US$ 800 per Metric Ton, Free on Board (FOB) basis, on onion export with effect from October 29, 2023, till December 31, 2023. The measure has been taken to maintain sufficient availability of onion to domestic consumers at affordable prices as the quantity of stored rabi 2023 onion is declining by curbing the quantity of onion exports. The MEP of US$ 800 per MT translates into about Rs 67 per kg.
Along with the decision to impose MEP on onion exports, the Government has also announced the procurement of additional 2 lakh tons of onion for the buffer, over and above the 5 lakh tons already procured. Onion from the buffer has been disposed continuously from the second week of August in major consumption centres all over the country, and also supplied to retail consumers at Rs.25 per kg through mobile vans operated by National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). Till date about 1.70 lakh Metric Tons of onion has been disposed from the buffer.
The decision to impose the MEP of US$ 800 per MT shows the determination of the Government to keep onion affordable to the domestic consumers.
