The government has fixed a minimum export price of $850 per tonne on onions in order to check exports and bring down spiralling prices in the local market.
“Export of all varieties of onions, as described above, will be allowed only on Letter of Credit subject to the MEP of $850 FOB per tonne till further orders,” according to a notification issued by the Directorate General of Foreign Trade (DGFT).
Onion prices have risen to about Rs 40-50 per kg in the national capital from Rs 20-30 per kg a few days back.
The country exports on an average 15 lakh tonnes of onions a year. India produces around 17-18 million tonnes of onion per year.