India moves to curb onion exports

India today imposed a minimum export price (MEP) of $800 per tonne on exports of onion – much higher than the prices at which importers were buying – in an effort to discourage exports and contain prices of the vegetable in its domestic market.

Importers were quoting $150-$205 per tonne to import onion from India before the imposition of the minimum export price, said Dipankar Ghosh, organising secretary of the Clearing and Forwarding Agents Association in Bhomra, a land port in the southwest bordering India.

Following the restriction, import prices will increase by over four times and landing prices of the bulb will be over Tk 100 per kilogram at the port, he said adding that prices of onions jumped after India's move.

The move comes two and a half months after India slapped 40 percent duty on the export of onions on August 19 to tame escalating prices in the domestic market.

The fresh restriction is likely to fuel prices of the popular food item in Bangladesh, which meets a portion of its demand through imports from countries, mostly India.

Onion prices in Indian markets rose to Rs 65-80 a kilogramme in the retail market of Delhi on lower supply.

In India, state-owned Mother Dairy is selling loose onions at Rs 67 per kg while e-commerce portal Bigbasket is selling at the same price while local vendors are selling onions at Rs 80 per kg.