Govt imposes MEP of $850/MT on onions to boost domestic supplies
The Dollar Business Bureau In order to increase local supplies and to control rising prices, the Government on Thursday levied a minimum export price (MEP) of $850 per metric tonne (MT) on onions till the end of this year. Minimum Export Price is the minimum rate below which exports are not allowed. In December 2015, the Government has scrapped the MEP of onion. “Export of all varieties of onions will be allowed only on Letter of Credit (LC) subject to a minimum export price (MEP) of $850 FOB per metric tonne till December 31, 2017, Directorate General of Foreign Trade (DGFT) said in a notification (No.39/2015-2020), dated November 23. The retail prices of onion have surged to Rs.50-65 per kg in most of the ...
India lifts 9-year ban on bulk export of certain edible oils
The Dollar Business Bureau The Government of India lifted a ban of nine years on bulk exports of some edible oils that include castor oil, coconut oil, groundnut, rice bran oil, soyabean and sesame. At present, edible oils export is permitted in branded packs up to 5 kg at a minimum export price (MEP) of $900 per MT. The government had banned the bulk export of edible oils nine years ago in 2008 to check price rise. “Exports of sesame oil, groundnut oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, have been exempted from the prohibition on the export of edible oil,” Directorate General of Foreign Trade (DGFT) said in a notification (No.43/2015-20) issued on Monday. “Export of edible oils was initially prohibited for ...
DGFT permits export of potatoes without any min export price
The Dollar Business Bureau The prices of potatoes have shot off the roof in most parts of India for the past couple of months. Though farmers are now getting almost double the price per kilogram, yet they suffer a loss as what they earn is much below the cost of production. The buyers, however, are having to pay through their nose. This is partly due to the heavy rains that damaged the crops in the leading potato-growing states of India- Odisha, Assam, Bihar and Jharkhand. The demand for potatoes is being met with the supply of old stock. The Government did not take any steps to check the price rise during the price peak months of October and November However, the Ministry of ...
Zero MEP to have less impact on onion prices, exports
Sai Nikesh | The Dollar Business In second week of December, the government had reduced MEP on onion from $700 per tonne to $400 per tonne In view of sharp decline in onion prices and its adequate supply in domestic market, the government has removed Minimum Export Price (MEP) cap of $400 per tonne to encourage overseas shipments. Experts are of the view that the move is unlikely to affect onion prices in domestic markets as its demand in export market might remain low. “Keeping in view of sharp decline in wholesale prices of onion in producing mandies of Maharashtra and major consuming mandies and huge arrivals of onion, the government decided to reduce the MEP to 'zero' from $400 per ...
Govt cuts down minimum export price of onions by 43%
The Dollar Business Bureau Taking note of the arrival of fresh crops in the market, the government on Thursday cut down the minimum export price (MEP) of onions to $400 per tonne from $700 per tonne. “On Onion - decision taken today to reduce the Minimum Export Price (MEP) of onion from $700 MT to $ 400 MT,” Commerce Minister Nirmala Sitharaman said in a tweet. The decision came after a meeting held between Finance Minister Arun Jaitely, Agriculture Minister Radha Mohan Singh and the Commerce Minister. Sitharamn also announced that an Inter Ministerial Group (IMG) would review the arrivals of onions in Mandis and their prices every two weeks. “Detailed periodic assessments will be kept up,” she said. Maharashtra ...
Maharashtra asks Centre to scrap minimum export price on onion
Source: PTI With wholesale prices down to the Rs.10 per kg level, the Maharashtra government has asked the Centre to scrap the minimum export price (MEP) for onions to help boost overseas shipments. In August, the government had hiked onion MEP to $700 per tonne, from $425, as prices at both wholesale and retail levels were skyrocketing on lower output due to unseasonal rains earlier. MEP is the rate below which no exports are allowed. The rise in MEP restricts exports and improves domestic supply. “In a letter written to the Union Agriculture Ministry, the Maharashtra government has demanded removal of onion MEP to encourage exports, which would protect interest of farmers,” a senior Agriculture Ministry official said. India exported 4,59,097 ...
Govt hikes minimum export price of onion to check domestic market rate
The Dollar Business Bureau In an effort to curb soaring prices of onion in the domestic market, the government has increased the minimum export price (MEP) of onion by more than 140% from $175 per tonne to $425 a tonne. “Export of all varieties of onions will be subject to a MEP of $425 FOB (freight on board) per tonne,” a report said citing a notification issued by the Directorate General of Foreign Trade (DGFT). According to officials, the move will discourage onion traders to sell the produce abroad, resulting in adequate supply in the domestic markets. In the wholesale markets within the country, the price of onion has increased from Rs 11,000 ($173) per tonne to Rs 17,000 ($268) in ...
