NEW DELHI: To control the prices of onion in the election year, the union government has imposed a minimum export price (MEP) and announced additional procurement of 2 lakh metric tonnes (LMT) to increase its availability in the domestic market.
Onion is being sold in Delhi-NCR at Rs 60-70 per kg, almost double the price last month. The government notified an MEP of 800 US dollars per metric tonne (MT) (over Rs 67 per kg) on onion export to maintain domestic availability. The procurement of two LMTs of the onion by the centre will be in addition to 5 LMT already procured. Procurement and disposal of onion from buffer stocks help moderate the prices and ensure remunerative prices to the farmers.
Several states have witnessed a sudden rise in onion prices–40 to 70 per cent– in the past couple of weeks. The average price of onion was around Rs 30 at the start of October.
According to the Department of Consumer Affairs, the prices are relatively higher in the southern and northeastern states as compared to central and northern states. Below monsoon rain has led to a decline in onion cultivation in southern states.
The government has claimed that it has been continuously disposing of the onion from the buffer since the second week of August and supplying it to retail consumers at Rs 25 per kg through mobile vans operated.
To date, over 1.70 LMT of onion has been taken from the buffer stock.