Government Announces Minimum Export Price and Increased Procurement to Stabilize Onion Prices

In a move aimed at ensuring a stable supply of onions to domestic consumers at affordable prices and supporting onion farmers, the Indian government has announced a Minimum Export Price (MEP) of USD 800 per Metric Ton, effective from October 29, 2023, until December 31, 2023. The decision comes as stored rabi 2023 onion quantities are declining, and it is essential to curb the quantity of onion exports to maintain an adequate domestic supply. The MEP of USD 800 per MT is approximately equivalent to Rs. 67 per kilogram.

Simultaneously, the government has revealed its plans to procure an additional 2 lakh metric tons of onions for the buffer, supplementing the 5 lakh metric tons already procured. This strategic buffer has played a crucial role in stabilizing onion prices and ensuring that both consumers and farmers benefit.

The government's approach includes a consistent process of procurement and disposal of onions from the buffer. Starting from the second week of August, onions from the buffer have been distributed to major consumption centers across the country. These onions are also supplied to retail consumers at a highly subsidized rate of Rs. 25 per kilogram through mobile vans operated by the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). To date, approximately 1.70 lakh metric tons of onions have been distributed from the buffer.

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The continuous procurement and disposal of onions from the buffer serve a dual purpose. On one hand, it helps to moderate onion prices, ensuring that consumers can purchase this essential commodity at reasonable rates. On the other hand, it guarantees remunerative prices to onion farmers, providing them with a fair return on their produce.

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The government's imposition of the MEP of USD 800 per MT underscores its commitment to making onions affordable for domestic consumers. With the rising concerns over declining onion stocks, these measures are expected to bring stability to the onion market and secure the interests of both consumers and farmers.

In light of these initiatives, the government is taking proactive steps to strike a balance between supporting its agricultural sector and safeguarding the interests of the public. As the nation continues to grapple with various economic challenges, these measures are a testament to the government's dedication to addressing the essential needs of the people.

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