Govt raises onion export price to cool local prices

NEW DELHI Wed Jul 2, 2014 12:56pm IST

A man weighs a sack of onions before unloading it from a supply truck at a wholesale market in Chennai February 4, 2013. REUTERS/Babu/Files

A man weighs a sack of onions before unloading it from a supply truck at a wholesale market in Chennai February 4, 2013.

Credit: Reuters/Babu/Files

Related Topics

NEW DELHI (Reuters) - India has raised the minimum export price for onion by 67 percent to augment domestic supply and curb price rise, a government statement said on Wednesday.

Exports will now be possible only at or above $500 per tonne. The government on June 17 set the minimum price at $300 per tonne.

Finance Minister Arun Jaitley said on Wednesday that high inflation was one of the major challenges for the government ahead of the budget next week.

Indians consume about 15 million tonnes of onions a year, using them as the base for curries and traditional dishes such as biryani and bhaji. In the past, higher onion prices have contributed to the fall of state governments.

India exports about 1.5 million tonnes of onions a year. Fears of domestic shortages have been fueled by a scorching summer, a lack of chilled storage and a threat of strike action by distribution workers.

(Reporting by Ratnajyoti Dutta; Editing by Krishna N Das)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

BRICS Bank

BRICS Bank

World Bank chief welcomes new BRICS development bank.  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Honda's India Thrust

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

 Boosting Output

Boosting Output

NMDC plans to boost iron ore output by two-thirds  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage