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The Union government is expected to fix a higher Minimum Export Price (MEP) for onions. A committee of officials is believed to have suggested $900 a tonne, almost $250 more than the current MEP, to curb its outflow.
The final call on export prices will be taken by the commerce minister, sources said. The meeting also decided to direct states to take action against traders who create an artificial shortage, a senior official said. A formal order is expected in a few days.
He said around 10,000 tonnes of onions had been exported this financial year, till September. It should stop with the new MEP.
The meeting had officials from the commerce, agriculture, consumer affairs and finance ministries.
Wholesale and retail onion prices in much of the country have increased sharply since July. In this city, retail prices are as high as Rs 80 a kg, compared with Rs 22 a kg a year before. Maharashtra, the largest producer and with the biggest stock, has been asked to ensure steady supplies to consuming states, the official said.
The state government has been asked to intimate the Centre if there are any bottlenecks in the supply chain.
Delhi's food and supplies minister, Haroon Yusuf, accused the Madhya Pradesh government on Wednesday of not taking action against hoarders in the state "with a purpose". MP is ruled by the rival Bharatiya Janata Party; Delhi’s is a Congress government. The retail price in the city had gone down to Rs 55 a kg recently but has since risen again, to Rs 80 a kg.The minister said the Delhi government had again started selling the vegetable at Rs 60 a kg, at 1,000 points across the city through vans.
