India: Hopes of drop in MEP price stabilises onion prices

The average wholesale onion prices at the country's largest wholesale onion market at Lasalgaon Agriculture Produce Market Committee stabilised on Thursday following reports that the government might reduce the minimum export price (MEP) of the crop in next few days.

The farmers, who suffered losses due to the decline in onion prices, have started resorting to demonstrations and road blockades in the district, seeking removal of the EMP of onions to boost export and thereby stabilise prices.

The commerce and industry of the Union government conducted a meeting, reviewing MEP of onions and decided to reduce the MEP of onions from the present MEP of 700 US dollars. The new revised MEP rates are to be announced, shortly.

According to sources, the onion export is not possible at such a higher MEP of onions. The reduction or removal of MEP will boost the onion export and thereby increasing the demand, which will help to control declining onion prices in domestic market.

Source: Timesofindia