The Indian government has moved to guard against price inflation on vegetables in the country’s domestic market, imposing a minimum export price (MEP) on potatoes of US$450 per tonne.
According to commoditiescontrol.com, potato prices have risen to Rs30 (US$0.49) per kg in Deli and other parts of the country. India’s Economic Times suggested the price hike was a protective measure, should domestic production suffer after a poor monsoonal season.
Earlier this year, Indian finance minister, Arun Jaitely, indicated the government would impose MEPs on staple vegetable lines such as onion and potatoes, in a bid to rein in food prices. The government issued a MEP of US$300 per tonne on onions on 17 June.