The Commerce Ministry is in favour of removing the minimum export price for onions and allowing exports without any restriction as its prices have softened across the country.
Responding positively to Agriculture Minister Sharad Pawar’s suggestion of doing away with the floor price, Commerce Minister Anand Sharma has sought a quick review of the situation from the inter-Ministerial committee on onions.
“The Minister (Anand Sharma) is comfortable with the Agriculture Minister’s suggestion of removing restrictions. He has asked for a quick review following which the necessary action would be taken,” Director-General of Foreign Trade Anup Pujari told Business Line. Last week, the Government lowered the MEP on onions to $350 a tonne from $800.
Exporters have been complaining that exports at the current floor price are not feasible as global prices are much lower.
The minimum export price was raised twice between September and November this year to curb spiralling price of onions.
It was fixed at $1,150 in early November when domestic onion prices touched Rs 100 a kg in some retail outlets.retail prices
With retail prices now at comfortable Rs 20-30 a kg, the Commerce Department has been lowering the floor price.
The inter-Ministerial group on onions, headed by Joint Secretary in the Commerce Ministry Asit Tripathy and comprising senior officials from Agriculture, Finance and Consumer Affairs Ministries, is likely to meet soon.
“The inter-Ministerial group will also see if there is a need for tinkering with the minimum export price at all. If domestic prices are higher than global prices, then removing the floor price may not be of any consequence to traders,” another official said.
The Commerce Ministry had earlier pointed out that the spiralling domestic prices of onions were not due to exports but due to hoarding.It had asked States to crackdown on hoarders so that they release onions in the market.
Source:- thehindubusinessline.com
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