The Minimum Export Price [MEP] of onion has been increased on November 15 by $ 150 per tonne to restrict exports, thereby augmenting the domestic supply.
The increase is for all destinations across the board. With this rise, the MEP for Gulf countries stands at $ 525 per tonne for export during the remaining part of November 2010 as compared to $ 375 per tonne earlier.
Export of onion is regulated through the mechanism of Minimum Export Price, which is fixed by Nafed in consultation with other State Trading Enterprises and leading associate shippers.
Nafed is also starting retailing of onion at reasonable price from its outlets in Delhi to provide succor to consumers. In addition, Nafed is initiating procurement of onion in bulk quantities from mandates of Western India so as to lift maximum quantity of FAQ grade onion arriving in the market.
All these efforts are likely to have positive impact on the price line of onion till the arrival starts from late kharif season.