As onion prices soar in major cities like Delhi and Mumbai, the central government has taken steps to address the issue.
Government data revealed that onion prices continued to remain elevated in the national capital, averaging Rs 78 per kilogram in the retail market. However, the all-India average for onions was around Rs 50.35 per kg, with the highest price reaching Rs 83 per kg and the modal price standing at Rs 60 per kg, according to the Department of Consumer Affairs.
The Department of Consumer Affairs has announced that one key measure is the imposition of a Minimum Export Price (MEP) of USD 800 per ton on onions from October 29, 2023, to December 31, 2023. This move aims to discourage onion exports and ensure an ample domestic supply.
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This decision is already making an impact in Maharashtra, a significant onion-producing state in India. Prices in the region have decreased by 5% to 9% from their recent peak levels. Across all markets in Maharashtra, the weighted average onion price has seen a significant drop of 4.5%. Similar price adjustments are visible in other consumption centers.
Farmers and wholesale traders anticipate this onion shortage to last for nearly two months, until December when new kharif stocks are expected to enter the market. Consequently, it's likely that onion prices will remain high during this period.