In a move aimed at stabilising local prices, the government announced on Friday the establishment of a minimum export price for onions and shallots at $1,200 per metric ton.
The notification detailing this decision was issued by the Ministry of Commerce.
This decision comes in response to the escalating local prices of onions and shallots, driven by a surge in demand in international markets.
Exporters operating in the domestic market have been capitalising on India’s ban on the export of these items, resulting in a shortage for local consumers.
The latest weekly inflation figures, ending on January 11, 2024, revealed a 1.36 per cent week-over-week increase in the Sensitive Price Indicator (SPI) for the Combined Group. Notably, the second-highest surge among all 51 items was witnessed in onion prices, which rose by 8.94 per cent.
This move by the government is strategically designed to curb the impact of export-related activities on local availability and pricing, with a focus on maintaining stability in the market.
The Ministry of Commerce’s notification underscores its commitment to addressing the challenges posed by increased international demand and its repercussions on the domestic front.
As authorities strive to strike a balance between facilitating exports and ensuring the availability of essential commodities for local consumers, the implementation of the minimum export price serves as a significant step in mitigating the adverse effects of market dynamics on the pricing of onions and shallots within the country.
