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Business News/ Economy / Onion prices at 80 a kg: Centre monitoring rise; imposes minimum export price of $800 per tonne
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Onion prices at ₹80 a kg: Centre monitoring rise; imposes minimum export price of $800 per tonne

Madhya Pradesh Congress Chief Kamal Nath took a jab at the current price inflation saying, 'onion is bringing tears to everyone's eyes.'

Centre has imposed a Minimum Export Price of USD 800 per ton on onions till December 31, 2023 (HT PHOTO)Premium
Centre has imposed a Minimum Export Price of USD 800 per ton on onions till December 31, 2023 (HT PHOTO)

Consumers in India are battling rising onion prices again as retail rates have touched 80 per kg in Mumbai. The day-to-day rise in onion prices has buyers calling for government intervention to lower cost.

Vegetable sellers on their part cite shortage in supply for the skyrocketing prices. Manoj from Agra told ANI that they are procuring onions for 60-65 from the mandi, but customers have kept away from the expensive allium.

Madhya Pradesh Congress Chief Kamal Nath in an interview took a jab at the current price inflation. “Onion is bringing tears to everyone's eyes," he told PTI.

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Government intervention

In an official statement, the central government has said that it is vigilantly monitoring onion exports and prices to ensure stability in the domestic market, ANI reported.

The Centre has also imposed a Minimum Export Price (MEP) of $800/tonne on onions, effective from October 29 to December 31. The move is aimed at discouraging exports and keeping more stock available for the domestic market.

As per the Consumer Affairs Ministry, the MEP has been successful in capping prices to some degree. The statement noted a 5-9 percent price drop from near record highs. Prices touched 83/kg on October 30.

The weighted average price of onions in Maharashtra across all markets has fallen by 4.5 percent. Similar price declines have been observed in consumption centres, it added.

Buffer stock, procurement

In response to increasing demand in November, the Department of Consumer Affairs has begun releasing onion buffer stock into the market. This includes distribution through mandi sales and discounted sales to retail consumers in high-price centres. Over 170 cities are covered by 685 mobile retail outlets.

NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (Network for Certification and Conservation of Forests) have initiated the procurement of an additional 2 LMT (Lakh Metric Tonnes) of onions from the kharif harvest. This stock will be distributed in high-price centres to stabilise onion prices and safeguard consumers' interests.

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Published: 31 Oct 2023, 11:54 AM IST
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