2024-09-14 11:55:33
New Delhi: The price of onion can cross Rs 100 per kg. This is because the government has removed the minimum export price (MEP) limit on onion. This means that farmers will now be able to send onions abroad in large quantities at a good price. Although this step will benefit the farmers, the price of onion may increase in the domestic market. The reason for this is that the supply of onions in the domestic market will be less. At the same time, there is still a lot of time for new onions to arrive. In such a situation, due to the rising price, the common man will again be hit by inflation. In the retail market, the price of onion is still between Rs 60 to Rs 80 per kg.Eyes on the elections, name of the farmers… know the new decision of the government on onion and basmati rice
What decision did the government take?
The government on Friday removed the minimum export price (MEP) limit on onions. Till now the MEP on onions was fixed at $550 per tonne. But the Directorate General of Foreign Trade (DGFT) has issued a notification removing it with immediate effect and till further orders. Commerce and Industry Minister Piyush Goyal says that this step will help in export promotion and farmers’ income.
What is the price of onion now?
The price of onion is still making people cry. Onion is available in the retail market at Rs 60 to Rs 80 per kg. The price of onion has increased in the last 15-20 days. Traders say that the increase in onion price is due to disruption in the supply chain and increase in demand. At the same time, the price of onion has also increased due to rain. Actually, the movement of trucks has been affected due to rain. Onion trucks are not able to reach the markets on time. Due to this, its arrival in the markets is less.
Why can the price of onion increase?
1. Exports will increase
After removing MEP restrictions on onions, farmers will sell good quality onions in large quantities abroad. This will give them a good price for onions. After freely exporting onions, there may be a shortage of onions in the country. If this happens, there will be a shortage of onions in the markets. Also, good quality onions will hardly be available. This will increase the price of onions.
2. It will take time for the new crop to arrive
It will take about two months for the new onion crop to arrive. In such a situation, new onions will not arrive in the markets right now. Farmers will export the onions that are in stock. Also, the same onions will be available in the retail market. Due to the non-arrival of new onions, the arrival of onions will also decrease. In such a situation, there may be a shortage of onions in the markets. If there is a shortage of onions and the demand increases, its price may increase.