Onion Prices Fall in Maharashtra After Govt Fixes Minimum Export Price

The Centre on Monday said that onion prices in Maharashtra fell by 5-9 per cent from last week following its decision to fix minimum export price. On Saturday, the Centre imposed a Minimum Export Price (MEP) of USD 800 per tonne on onion exports till December 31 to boost the availability of the vegetable in the domestic market.

Immediate Impact

In an official statement, the government said that its decision to impose Minimum Export Price of USD 800/ton on Onion with effect from 29th October 2023 till 31st December 2023 to discourage exports and maintain availability in domestic markets has shown an immediate impact of price correction in Maharashtra markets. In Maharashtra, prices recorded a decline of 5 per cent to 9 per cent from the highest price registered during last week, it added. The weighted average price of onion in Maharashtra across all the markets has declined by 4.5 per cent and a similar decline was observed in consumption centres as well.

Government Measures

The Department of Consumer Affairs is monitoring exports and prices on a daily basis to ensure stable domestic prices and availability to consumers, the statement said. In view of increasing demand in November, the department has started releasing onion buffer stock into the market both through mandi sales and discounted sales to retail consumers at centres of high prices. This includes retail sales through 685 Mobile retail outlets covering over 170 cities. NAFED and NCCF have also started procuring an additional 2 lakh tonnes of onion of kharif harvest to be distributed in high-price centres to keep the onion prices under control.

Current Market Situation

Onion prices remained at a high level in the national capital on Monday and were ruling at an average price of Rs 78 per kilogram in the retail market, according to government data. However, the all-India average price of onion was around Rs 50.35 per kg while the maximum rate was Rs 83 per kg and the modal price was Rs 60 per kg, as per the data compiled by the Department of Consumer Affairs. The minimum rate is Rs 17 per kg.

The Centre's decision to impose a minimum export price on onions appears to have had an immediate impact on prices in Maharashtra, with prices falling by 5-9%. The government is also taking other measures to ensure that onion prices remain stable in the domestic market, including releasing buffer stock and procuring additional onions. These measures should help to keep onion prices affordable for consumers in the coming months.