India’s imposition of $800 per tonne floor price for onion increases

News Desk :
Bangladesh’s onion market is set for another hit after India on Saturday (28 October) imposed a minimum export price (MEP) of $800 a tonne on onion exports between 29 October and 31 December to ensure domestic availability.

The move was likely prompted by the rising onion prices in the country owing to a delay in the arrival of kharif onions – which, along with late kharif crops, contribute 40% of India’s onion produce, Mint reports.

Onion prices have shot up more than 50% in the past two weeks to ?80 a kg in the retail markets of Delhi, the Mint report added.
In Bangladesh, onions continue to be a sore point.

Earlier, Bangladesh bought onions at around $300 per tonne.

But then the local onion market was hit by the hefty 40% export duty imposed by India, a major supplier of the essential kitchen ingredient to Bangladesh, back on 19 August, which was set to stay till 31 December.