Centre imposes floor price on onion exports to ensure domestic availability

By Chicago 6 Min Read

The union government on Saturday imposed a minimum export price (MEP) of $800 a tonne ( ₹67 a kg) on onion exports between 29 October and 31 December to ensure domestic availability.

The move comes against the backdrop of rising onion prices owing to a delay in the arrival of kharif onions, which are now expected to hit the market from Maharashtra, the top grower, in December.

Onion prices have shot up more than 50% in the past two weeks to ₹80 a kg in the retail markets of Delhi. Benchmark prices of the kitchen essential in Maharashtra’s Lasalgaon, India’s onion-trade hub, increased 58% in two weeks to ₹38 a kg on Tuesday. Average prices in key onion growing districts of Maharashtra are in the range of ₹45 to ₹48 a kg.

Traders said reduced arrivals of onions was the primary reason for the rise in prices. The arrival of stored onions has declined by about 40% in the past fortnight. Another reason is the delayed arrivals of the kharif harvest from the key onion-growing states of Maharashtra and Madhya Pradesh.

Additionally, the sowing of kharif onions in Karnataka and Andhra Pradesh has been low as farmers incurred losses over the past two years. Below-normal rainfall in these states has further reduced onion production.

Traders expect onion prices to rise further until the new kharif crop hits markets in December, nearly two months late.

“The measure has been taken to maintain sufficient availability of onions for domestic consumers at affordable prices (as the quantity of stored rabi 2023 onion is declining) by curbing the quantity of onion exports,” an official release read.

Earlier, a senior government official told Mint that a floor price for onions was being considered as exports were up significantly in October, causing an increase in domestic prices.

In response to growing demand and delayed production when prices shot up in August, the union government sold onions to consumers at a concessional rate and imposed a 40% duty on onion exports.

Since mid-August the government has offloaded 170,000 tonnes of onion in major consumption centres across the country and supplied it to consumers at ₹25 a kg through mobile vans operated by NCCF and NAFED from its buffer stock of 500,000 tonnes, the release stated. To boost domestic availability, the government will also procure an additional 200,000 tons of onion for the buffer, taking the total stock to about 700,000 tonnes.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

.productListBox-table{margin-top:20px;margin-bottom:15px}.table-responsive{overflow:auto}.table-responsive.story-element table{min-width:100%;margin-top:20px;width:100%}table,td,th,tr{border-collapse:collapse}.table-responsive.story-element table tbody tr:first-child td:first-child,.table-responsive.story-element table tr:first-child td{background:#757575;font-size:14px;color:#fff;border:none;font-family:Lato-Bold;text-align:left;padding:13px 16px}.table-responsive.story-element table tr:first-child td:nth-child(1){border-radius:2px 0 0}.table-responsive.story-element table tr:first-child td:last-child{border-radius:0 2px 0 0}.table-responsive.story-element table tbody{border:1px solid #eee}.table-responsive.story-element table tbody tr td{padding:10px 16px;background:#f9f9f9;color:#212121;line-height:18px;font-size:14px;font-family:Lato-Regular}.table-responsive.story-element table tbody tr td .tblbuynow{color:#00b1cd;font-size:14px;font-family:Lato-Black;text-align:right;text-decoration:none;text-transform:uppercase}.table-responsive.story-element table tbody tr td:first-child,.table-responsive.story-element table tbody tr td:first-child a{color:#212121;line-height:18px;font-size:14px;font-family:Lato-Bold}.tableRowTitle{-webkit-line-clamp:1;-webkit-box-orient:vertical;overflow:hidden;text-overflow:ellipsis;display:-webkit-box}.tableRowTitle a{text-decoration:underline}.table-responsive.story-element table tbody tr:first-child td{color:#fff!important}.productListBox-table tr:hover td,.productListBox-table tr:hover td a,.productListBox-table tr:nth-child(2) td,.productListBox-table tr:nth-child(2) td a,.tdCyan-ever td,.tdCyan-ever td a{color:#00b1cd!important}.table-responsive.story-element table tbody tr td:last-child{white-space:nowrap}

.author-widget{border: 2px solid #f99d1c;margin: 20px;padding: 10px;border-radius: 5px;}
.author-widget .authorBox2{ width:100%; padding: 0; margin-top:0; margin-bottom:0;background-color: #fff; box-sizing:border-box;}
.author-widget .authorImg{ margin-top: 5px;width:62px; height:62px; border:1px solid #f99d1c; float:left; padding:4px; box-sizing:border-box; border-radius:50%;}
.author-widget .authorImg img{ width:54px; height:53px; border-radius:50%;}
.author-widget .authorDesc{ margin:0 0 0 9px; float:Left; width: calc(100% – 71px);}
.author-widget .authorDesc h2{margin:0; padding:0; font-weight:900; color:#000; font-size:16px; font-family: ‘Lato Black’,sans-serif; margin-bottom:5px; white-space:nowrap; overflow: hidden; text-overflow: ellipsis;}
.author-widget .authorDesc h2 a{color:#000;}
.author-widget .authorDesc h2::after{display:none;}
.author-widget .authorDesc h1 {display: block;float: none;width: 100%;padding: 0;}
.author-widget .authorDesc h5{display: block;width: 100%;font-weight:400; color:#757575; font-size:14px; font-family: ‘Lato Regular’,sans-serif; margin-bottom:5px; white-space:nowrap; overflow: hidden; text-overflow: ellipsis;}
.author-widget .authorInfo{border-top: 0;margin-top: 0;padding: 0;font-weight:400; color:#424242; font-size:16px; line-height:22px; font-family: ‘Lato Regular’,sans-serif;display: -webkit-box;-webkit-line-clamp: 3;-webkit-box-orient: vertical;overflow: hidden;}
.author-widget .title {font-weight: 700;color: #757575;padding: 10px;}
.author-widget .author-read-more{color: #f99d1c;text-decoration: underline;font-size: 17px;}
.author-widget .authorDesc .marZero .fl{color: #000 !important;}
@media (max-width: 767px){
.author-widget .authorInfo{
-webkit-line-clamp: 4;


Puja Das

Puja Das is a New Delhi based policy reporter covering food, farm, fertiliser, water, and climate policies for Mint. Puja reports on farmers’ distress and how the agriculture sector is impacting India’s rural economy and policy initiatives to help meet the pledges made at COP27. Puja holds a post-graduation degree in Broadcast Journalism from the Indian Institute of Journalism & New Media, Bangalore.

Read more from this author

Related Premium Stories There is also a third possible scenario, one that may only earn Dr. Saluja a costly victory over the Burmans. (Photo: Bloomberg)

Mint Explainer: Is Dr. Saluja’s battle against the Burmans worth fighting?

A clutch of big-ticket movies are hitting the screens in the Diwali weekend.

Theatres look for Diwali sparkle in post-covid bounceback

Against ₹500 cr invested in NSE’s secondary market, direct retail pumped ₹50,500 cr into equity futures and equity options in Apr-Sep. (Photo: Reuters)

Retail derivatives inflows in NSE at 100x that of cash

Wine was a distant six out of nine alcobev categories (excluding beer) in terms of total volume sales in 2017, according to IWSR. Photo: Pradeep Gaur/Mint

Alcobev sector expects mixed spirits for Diwali, wedding season

The report said household consumption expenditure increased from ₹49 trillion in 2012 to about ₹143 trillion in 2022 (Photo: Ramesh Pathania/Mint)

Mint Explainer: How does credit from banks and non-banks affect consumption?

Justice Tarun Agarwala, the presiding officer and judicial member of the SAT, is expected to retire in December.

Delays likely in SAT cases as key post falls vacant in December

The older IITs start their placements on 1 December, while the rest have already started.

Engineering schools cut minimum salary threshold to lure recruiters

Of the eight changes that have been effected, at least three were based on relative underperformance, according to four executives who spoke with Mint. Besides, two CEOs announced their desire to step down after leading the respective companies for over a decade.

IT services cos navigate a year of changes at top

During the covid lockdowns, many tech workers left cities to work from locations closer to home, reducing rental demand.

Tech workers’ return to office boosts house rents

IIT-Kanpur has been working on cloud seeding for over five years but the technology is yet to go mainstream (Photo: Hindustan Times)

Mint Explainer: Why cloud seeding is easy to propose but hard to implement

Explore Premium

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Updated: 28 Oct 2023, 08:27 PM IST

Share This Article

It was Thursday night when we started to negotiate. Do we need to evacuate to the south or

It was Thursday night when we started to negotiate. Do we need

By Chicago

“Please go to a safer place. Your lives matter more than the news.” This is what a news a

“Please go to a safer place. Your lives matter more than the

By Chicago

“Botched” star @drdubrow took some time away from #BravoCon to fill us in on some of the h

“Botched” star @drdubrow took some time away from #BravoCon to fill us

By Chicago