New Delhi: The government today steeply cut the minimum export price of onion to USD 350 a tonne from USD 800 per tonne, a move aimed at encouraging exports amidst a crash in wholesale prices leading to protest by farmers in producing states.
"Exports of all varieties of onions...Will be subject to a MEP of USD 350 per tonne," the Director General of Foreign Trade (DGFT) said in a notification.Three days ago, DGFT had reduced the MEP to USD 800 from USD 1,150 a tonne.
An official statement said an inter ministerial panel, after factoring in improvement in arrivals in the latter half of November and in early December, decided to reduce the MEP.
"Now that the arrivals have shown marked improvement and on expectations of better crop prospects and the sharp decline in the wholesale model prices in production mandis of Maharashtra and other places, it has now been decided by the government to slash the MEP to USD 350 with immediate effect."
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