This is the third downward revision of onion MEP, the benchmark price below which the commodity can not be exported, this month. On December 16, the Centre had reduced it to USD 800 a tonne from USD 1,150 a tonnes and just three days after that MEP was slashed to USD 350 a tonne.
"Exports of all varieties of onions...Will be subject to a MEP of USD 150 per tonne," the Director General of Foreign Trade (DGFT) said in a notification.
Wholesale prices in Lasalgoan market, Asia's largest onion market, have crashed below Rs 10 a kg from Rs 60 in September while in retail markets rates have fallen from Rs 100-level to Rs 20-25 a kg.
With wholesale prices declining sharply due to bumper crop, farmers in producing states like Maharashtra have been protesting with demand for removal of export restrictions.
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MEP reduction has helped in checking exports, which fell 8.53 lakh tonnes (LT) during April-November period of this fiscal against 18.22 LT in the same period in 2012-13.
India produces around 17-18 million tonnes of onion a year. It is an essential kitchen staple and also a politically sensitive commodity.
The government would intervene to ensure price stability and adequate domestic availability of onions along with price protection with a view to balance the interests of both farmers and local consumers.