Govt removes MEP on onion export, prices rise slightly

The Central Government removed the Minimum Export Price (MEP) on onions paving the way for further exports, even as prices increased by around Rs 5 per kg in various APMCs in Nashik on Saturday.

Two days back heavy arrivals and lack of exports had caused an onion glut and prices had dropped by nearly Rs 10 per kg in various APMC yards in Nashik district.

The GR on removal of MEP USD 750 per ton, was received late on Friday and immediately implemented on Saturday, when the markets opened up.

Lasalgaon APMC chairman Jaydatt Holkar said that it was the cumulation of various appeals to Chief Minister Fadnavis and Commerce Minister Suresh Prabhu. “I had collected letters from all APMCs and met the CM and appealed him to remove the MEP as there was no point in continuing with it when onion was in excess in the country,” he said.

On Saturday, the onion rates in Chandwad APMC were minimum Rs 9.0 per kg, maximum Rs 19.61 per kg and average Rs 17.50 per kg.

Farmer Mahesh Thube of Khedgaon said that the farmers are always at the receiving end, whether prices rise or fall. “The Government has shown humanity to the plight of farmers and removed MEP on onions, which will bring stability to the market and give some little profit to the hardworking farmer,” Thube stated.

MEP in dollars is the minimum price of onion that an exporter can sell abroad. As the best quality crop is exported, prices increase during exports, so the government fixes MEP which indirectly curbs exports.