MEP on Onions Cut to US$150 from US$350/MTs

Great Fall from $900 on 14 Aug 2013

A meeting was held on December 25, 2013 between the Minister of Agriculture and the Minister for Commerce and Industry to discuss the issues related with sharp decline in the wholesale prices of onions in the producing mandies of Maharashtra and need for a review of MEP.  This meeting was attended by senior officials from the Departments of Agriculture & Cooperation, Consumer Affairs and Commerce.

After reviewing the situation of arrivals in the producing and major consuming mandies, retail and wholesale modal rates as well as foreign trade scenario, inter-alia, the following decisions were taken:

Decisions:

(i)    To further reduce the MEP from USD 350 PMT to USD 150 PMT.

(ii)   Secretaries of Departments of Commerce, Consumer Affairs and Agriculture/ Inter Ministerial Committee (IMC) on onions will regularly and closely monitor the arrivals, wholesale modal prices and retail prices of onions in the country. The government will make appropriate interventions in future as and when required to ensure price stability for consumers and adequate domestic availability of onions along with price protection for farmers with a view to balance the interests of both farmers and domestic consumers.

[DGFT Notification No. 61 dated 26th December 2013]

Subject: Export Policy of Onions.

In exercise of powers conferred by Section 5 of the Foreign Trade (Development& Regulation) Act, 1992 (No. 22 of 1992) read with Para 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government amends para 2 of Notification No.03(RE-2012)/2009-14 dated 29.06.2012 read with Notification No.59(RE-2013)/2009-14 dated 19.12.2013 with immediate effect .

2.  The amended para 2 of Notification No. 03(RE-2012)/2009-14 dated 29.06.2012 will now read as:

“Export of onion for the item description at Serial Number 51 & 52 of Schedule 2 of ITC(HS) Classification of Export & Import Items shall be permitted subject to a Minimum Export Price(MEP) of US$ 150 per Metric Ton F.O.B. or as notified by DGFT from time-to-time”.  

3.  Effect of this Notification:

Export of all varieties of onions as described above will be subject to a Minimum Export Price (MEP) of US$ 150 per MT.