The government today removed the minimum export price (MEP) on potato, which was imposed in July, to boost shipments of the kitchen staple.
Wholesale potato prices in Agra, Uttar Pradesh has increased to Rs 15.25 per kg today from Rs 7 per kg in the year-ago period.
Onion exports stood at 9,80,566 tonnes during the 11 months of 2015-16 as against 9,70,442 tonnes in the same period of the previous financial year, according to data compiled by the National Horticultural Research and Development Foundation (NHRDF).
The exports stood at 4,85,930.51 tonnes during April- September period of the current 2015-16 fiscal compared with 5,89,900.89 tonnes in the corresponding period of the previous year, according to data compiled by National Horticultural Research and Development Foundation (NHRDF).
"All varieties of onions... can be exported without any MEP," Directorate General of Foreign Trade (DGFT) said in a notification.
"On Onion - decision taken today to reduce the Minimum Export Price (MEP) of onion from USD 700 tonne to USD 400 a tonne," Commerce Minister Nirmala Sitharaman tweeted.
With the fresh stock of winter onion arriving in the agricultural produce market committees (APMCs) across the district, the prices of this kitchen staple has witnessed a drop.
In an agrarian economy like India, the failure to anticipate a crisis of this nature can create a mayhem in the markets
Government on Friday increased sharply the minimum export price (MEP) of onion by USD 175 per tonne to USD 425 per tonne to ensure adequate domestic supply and contain price rise.
The humble onion has already hit a century in the retail markets of Bhopal and Patna. It is expected to complete a century in Delhi, Chandigarh, Srinagar, Lucknow and other north Indian vegetable markets.
Due to the minimum export price (MEP) determined by the government, Gurnam Arora, joint managing director of Kohinoor Foods Ltd tells CNBC-TV18 that the industry is taking a hit of almost 30% on exports.
Within a fortnight, the government today further lowered the export price of onion by USD 100 to USD 250 a tonne to make it competitive in the international markets.
The government today increased the minimum export price of onion by a sharp USD 175 per tonne to USD 475 a tonne -- a move aimed at discouraging outbound shipments and controlling surging domestic retail prices of the kitchen staple.
The Minimum Export Price (MEP) of three non-basmati rice varieties, Sona Masuri, Ponni Samba and Matta was reduced from USD 850 per tonne to USD 600 per tonne by the government on August 14, 2011.
The government has allowed export of one million tonnes of non-basmati rice through private trade and fixed the export price at USD 400 per tonne.
The government has slashed the minimum export price (MEP) of onion for the third time this month to USD 275 per tonne from the earlier price of USD 350 per tonne.
India has cut the floor price for onion exports to USD 350 per tonne, a government statement said, its second reduction this month, boosting prospects of overseas sales of the vegetable from the world's second biggest producer.