The Indian government has lowered the Minimum Export Price (MEP) for onions from US$250 per tonne to US$150 per tonne, increasing its competitiveness in international markets.
Indian media has reported onions from China and Egypt have been retailing for less than US$200 per tonne in some international markets.
The government often raises the MEP to control domestic prices for the commodity.
One senior consumer affairs ministry official told Indian newspaper the Business Standard he believed the government should remove the MEP altogether. “We are in favour of a total withdrawal of onion MEP, as prices have declined sharply in the last few months, because of which there is no need for an MEP,” he said.