Key Points
The government introduced a minimum export price (MEP) to discourage exports, imposing $800 per tonne until December 31.Agencies..
Onion prices are likely to remain high for at least a month due to low supplies, while exports are expected to stay robust as the removal of the 40% export duty has made overseas shipments more profitable amid strong global demand...
The central government had removed the export duty on Saturday, while introducing a minimum export price (MEP) to discourage onion exports...
ET first reported about under-invoicing by exporters to evade export duty, which had kept exports robust, following which, the government had imposed MEP, which was being demanded by a section of traders...
The objective of introducing MEP was aimed at curtailing onion exports, which had remained strong even after the government slapped the 40% export duty in August..
You might be interested in
India allows export of onions to select nations
19, Feb, 24India, the world's second largest onion exporter, had banned shipments of the kitchen staple in December 2023 till March 2024 due to rising domestic prices and potential shortages. This led to a surge in onion prices in neighbouring countries.
Peeling off layer by layer: Regulating onion prices & its crash
22, Feb, 24Onion prices in the retail trade have fluctuated from ?90 per kg to ?20/kg during the last six months, while the wholesale prices have seen a high of Rs 55/kg and lows of Rs 5/kg during the same period. Shortage in India's last year's rabi crop, followed by erratic monsoon affecting the kharif crop and a robust export demand have been among the top causes for India's onion ongoing problem. During the last few days, the country saw onion prices increase by Rs 5/kg on reports that the central government had decided to lift the export ban, but have again fallen after consumer affairs secretary Rohit Kumar Singh issued a statement that the export ban would continue.
Onion exporters warn of major shortage in onion supply; price hike from early March
19, Feb, 24India faces onion shortage due to drop in rabi harvest. Meanwhile, export ban causes price crash, protests. Exporters suggest controlled exports amid shortage and high international prices. In a letter to the Union government, a group of leading onion exporters have cautioned the government about the consequences of allowing onion exports without adhering to a proper mechanism to control export volumes.
Why are onion exports continuing in substantial volumes despite an export duty of 40%? An explainer
26, Oct, 23Veteran trade insiders say the reason why exports are still continuing in high volumes is under invoicing of onion prices by exporters, as that allows them to pay lower duty.
Onion traders seek floor price for export duty
22, Aug, 23The onion trade has requested the government to introduce a floor price for calculating export duty on onions in order to ensure fairness among all stakeholders. Bans and restrictions on wheat, rice, and onion exports are causing revenue losses and inventory pileups for businesses. The government has imposed a 40% export duty on onions to control rising prices, but there is concern that certain ports and stakeholders may have an advantage.
Centre’s 40% duty on onion exports will harm farmers: Sharad Pawar
21, Aug, 23The central government’s 40% duty on onion export will harm farmers, NCP chief Sharad Pawar said on Sunday | Latest News India
Centre imposes floor price on onion exports to ensure domestic availability amid rising prices
28, Oct, 23The price of onions has shot up more than 50% in the past two weeks because of a delay in the arrival of kharif onions, which are now expected to hit markets in December
No difference if people don't eat onions for 2-4 months: Maharashtra minister
22, Aug, 23The Union government on August 19 imposed 40 per cent duty on the export of onions to increase domestic availability amid signs of increasing prices and in view of the upcoming festival season.
Govt imposes 40% duty on onion exports till December 31
19, Aug, 23The export duty comes amid reports that onion prices are likely to rise in September.
Export duty on onions: Union Minister Bharti Pawar says prices will not crash
22, Aug, 23Government increases buffer stock of onions to balance demand and supply, amid rising prices.