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To control onion prices that have risen as high as Rs 70-80 per kg in most places, cooperative Nafed has recommended the government further hike the minimum export price (MEP) of onion to $900 a tonne.
Last month, the government had re-imposed MEP on onion at $650 a tonne to curb shipments and control rising prices.
Due to fixing of export floor price, onion shipments in August had come down substantially to 29,000 tonnes.
"We have submitted a report to the Agriculture Ministry suggesting increasing MEP on onion to$900 a tonne," a senior Nafed official told PTI.
The government is keeping a close watch on price situation. It has taken several measures to improve supplies including through imports. The Centre has also directed all state governments to crackdown on hoarders and speculators who are keeping onion prices artificially high.
Meanwhile, Nafed has floated global tenders to import onions but has not taken a decision yet due to phytosanitary issues.
Some private traders have imported onions and they are being sold in the domestic market.
There is short supply of onion in the country as much of the stored onions of last year's crop are exhausted and new crop from South India is yet to arrive in huge quantities in the consuming states.
