The Indian government has lowered the minimum export price (MEP) of onions after supplies on the domestic market have stabilized and prices steadied.

Throughout 2014, various export limits have been set in relation to onions with the latest move decreasing the MEP back down to US$300 per metric ton (MT).

It had been set at a higher rate of US$500 per MT in July to restrict overseas shipment at a time when prices were shooting up on the domestic market.

However, India's Ministry of Commerce and Industry changed its export policy in relation to onions on August 21 with a notice confirming the MEP change, adding that it could be altered 'from time-to-time'.

Vegetables prices have been closely monitored by India’s new government, led by Prime Minister Narendra Modi who stormed to victory earlier this year.

In his pre-election manifesto he pledged a raft of measures to propel India’s agricultural industry and export sector, promising to keep domestic prices low and contain inflation on staple products including onions and potatoes.

The 40% reduction to onion MEP demonstrates the government is satisfied with stocks held by farmers for the time being.

In June the MEP for potatoes was set at US$450 per MT.

Photo: www.shutterstock.com

www.freshfruitportal.com