The government has imposed a minimum export price (MEP) of USD 800 per tonne on onion exports till December 31 this year to increase availability of the vegetable in the domestic market and contain prices. 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.
"Exports on onion is free. MEP of USD 800 FOB (free on board) per tonne is imposed till December 31, 2023," the Directorate General of Foreign Trade said in a notification on Saturday. Onion prices have further risen to Rs 70-90 per kilogramme in the retail market of the national capital on lower supply.
Mother Dairy, which has around 400 Safal retail stores in the Delhi-NCR, is selling loose onions at Rs 67 per kg. E-commerce portal Bigbasket is selling at Rs 67 per kg, while Otipy at Rs 70 per kg. Local vendors are selling onions at Rs 80-90 per kg. The Centre has decided to step up the sale of buffer onion at a subsidised rate of Rs 25 per kg in retail markets in order to provide relief to consumers.
According to the consumer ministry, onion is being offloaded from the buffer stock in both wholesale and retail markets in states where there is a sharp rise in prices. Since mid-August, about 1.7 lakh tonne of buffer onion has been offloaded in 22 states at different locations.
In retail markets, buffer onion is being offloaded through two cooperative bodies NCCF and NAFED outlets and vehicles at a subsidised rate of Rs 25 per kg. In Delhi too, buffer onion is being sold at this subsidised rate.
A senior ministry official said the delay in kharif onion sowing due to weather reasons has resulted in less coverage and late arrival of the crop. The fresh kharif onion should have started arriving by now but it has not. With stored rabi onion getting exhausted and delay in arrival of kharif onion, there is a tight supply situation, resulting in price increase in both wholesale and retail markets, the official added.
He also mentioned that the government has doubled the buffer onion stock for the current year and this should improve domestic availability and check prices in the coming days.
For 2023-24 fiscal year, the consumer affairs ministry through NCCF and NAFED has maintained a buffer onion stock of 5 lakh tonne and plans to procure additional 2 lakh tonne onion in the coming days