.jpg "Why Onion Prices Are Rising: Causes and Solutions")
On May 4, 2024, the Indian government lifted the prohibition on onion exports. The new policy allows exports with a Minimum Export Price (MEP) of USD 550 per metric ton and an export duty of 40%. This move aims to regulate the export market and stabilize domestic prices.
Onion: Export Performance
Since the policy change, India has exported a total of 2.60 lakh tons of onions by July 31, 2024. The export figures indicate a strong performance, contributing to India’s income from onion exports. This follows a trend of increasing export values in recent years.
Domestic Price Trends
Domestic onion prices have seen a significant rise compared to the previous year. Between April and July 2024, the average monthly mandi modal prices in Maharashtra ranged from Rs.1,230 to Rs.2,578 per quintal, compared to Rs.693 to Rs.1,205 per quintal in the same period last year. The average procurement price for the buffer stock was Rs.2,833 per quintal, a 64% increase from last year’s Rs.1,724 per quintal.
Export Earnings
India remains a net exporter of onions, with substantial earnings from these exports. The net export values for the past three years were Rs.3,326.99 crore in 2021-22, Rs.4,525.91 crore in 2022-23, and Rs.3,513.22 crore in 2023-24. These figures underscore the importance of onion exports to the Indian economy.
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