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

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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