Govt imposes USD 800/tonne minimum export price on onion; to buy additional 2 lac tonnes for buffer
NEW DELHI: In an effort to boost the supply of onions on the domestic market and control pricing, the government on Saturday set a minimum export price (MEP) of USD 800 per tonne for onion exports through December 31 of this year. The ruling is effective as of October 29. In addition, the government has declared that it will purchase an extra 2 lakh tonnes of onions for the buffer in addition to the 5 lakh tonnes that it has already purchased. All onion varieties—aside from Bangalore Rose and Krishnapuram onions—as well as chopped, sliced, or broken onions in powder form are covered by the MEP. "Onion exports are free. MEP of USD 800 FOB (free on board) per tonne is enforced through December 31, 2023, according to a statement from the Directorate General of Foreign Trade. According to an official statement, the action will support keeping onions reasonably priced and sufficiently available to domestic consumers as the amount of Rabi 2023 onions being stored is decreasing. The MEP of USD 800 per tonne is equivalent to roughly Rs 67 per kg. Since the second week of August, onions from the buffer have been regularly disposed of in the nation's key consumption hubs. They have also been made available to retail customers at a cost of Rs 25 per kg via mobile vans run by NCCF and NAFED.Approximately 1.70 lakh metric tonnes of onions have been removed from the buffer thus far. In order to keep consumer prices in check and guarantee onion growers receive fair compensation, onions are continuously purchased and disposed of from the buffer, according to the statement. The DGFT announcement further stated that some onion consignments, including those that were turned over to Customs prior to this notice and are registered in their system, will be permitted to be exported without MEP. Consignments of onions that were brought into the Customs station for exportation prior to the issuance of this notification and that are registered in the electronic systems of the relevant Customs station custodian with verifiable proof of the date and time these goods were brought into the Customs station are also eligible for export. It further stated that export duties paid would not be reimbursed. Due to a reduction in availability, onion prices in the national capital's retail market have increased even further to Rs 65–80 per kg. In Delhi-NCR, Mother Dairy, which has over 400 Safal retail locations, charges Rs 67 per kg for loose onions.e-commerce website Otipy costs Rs 70 per kg, whereas Bigbasket sells for Rs 67. Onions are being sold by local sellers for Rs 80 per kg. On Wednesday, Mother Dairy was selling onions for Rs 54–56 per kg; as of right now, the price per kg has increased to Rs 67. The Centre agreed on Friday to increase the sale of buffer onions at a discounted rate of Rs 25 per kg in retail markets in an effort to help customers in light of the increase in retail prices. The average retail price of onions in India on Saturday is Rs 45 per kg, with a maximum price of Rs 80 per kg, according to data from the Department of Consumer Affairs. The going rate in Delhi is Rs 75 per kg on average. In those states where there has been a significant increase in prices, the ministry reports that onions are being offloaded from the buffer stock in both wholesale and retail markets. Approximately 1.7 lakh tonnes of buffer onions have been offloaded at various places across 22 states since mid-August. Buffer onions are offloaded from retail markets by vehicles and the outlets of two cooperative entities, NCCF and NAFED, at a reduced rate of Rs 25 per kg. Buffer onions are also available in Delhi at this discounted price. According to a top government official, poor weather caused the kharif onion seeding to be delayed, which led to less crop coverage and a delayed delivery of the crop. By now, the fresh kharif onions ought to have begun to arrive, but they haven't. The official said, "There is a tight supply situation, resulting in price increases in both wholesale and retail markets. This is caused by stored rabi onions running out and delays in the arrival of kharif onions." The government has quadrupled the buffer supply of onions for the current year, he added, so domestic availability should improve and pricing should be monitored in the coming days. The consumer affairs ministry, working with NCCF and NAFED, has kept a buffer stock of 5 lakh tonnes of onions for the 2023–24 fiscal year. They also have plans to purchase an additional 2 lakh tonnes of onions in the near future. [caption id="attachment_4635" align="alignnone"…
