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. “MEP of onions other than Bangalore Rose Onions and Krishnapuram onions will be USD 275 per metric tonne FOB (freight-on-board),” the Directorate General of Foreign Trade said in a notification.
On March 1, the MEP was lowered to USD 450 per tonne from USD 600 a tonne and again on March 8, it was reduced to USD 350 a tonne.
Last month, the government had lifted ban on onion exports after farmers’ protests on crashing of domestic prices. It, however, capped the MEP at a higher level of USD 600 per tonne as a precautionary measure to control retail prices, which had shot up to Rs 70-80 per kg in December last year.
Relevant Notification is as given below:-
Notification No. 34(RE-2010)/2009-2014, New Delhi, Dated: 16th March, 2011
Subject:- Minimum Export Price of Onions.
S.O. (E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government makes the following amendment in Notification No 30(RE – 2010)/2009-2014 dated 08.03.2011 read with Notification No 24(RE – 2010)/2009-2014 dated 18.02.2011. This will be with immediate effect.
2. The phrase “Minimum Export Price(MEP) of US$ 350 per Metric Ton F.O.B. or as notified by DGFT from time-to-time” as appearing in para 2 of Notification No 30(RE – 2010)/2009-2014 dated 08.03.2011 for the item description at Serial Number 44.01 of Notification No 24(RE–2010)/2009-2014 dated 18.02.2011 is replaced by the phrase “Minimum Export Price(MEP) of US$ 275 per Metric Ton F.O.B. or as notified by DGFT from time-to-time”
3. Effect of this notification:
Minimum Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be US$ 275 per Metric Ton F.O.B. It was US$ 350 per Metric Ton as notified on 08.03.2011.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: [email protected]
(Issued from File No. 01/91/180/922/AM’08/PC-III/Export Cell)