A meeting was held on December 25, 2013 between the Minister of Agriculture and the Minister for Commerce and Industry to discuss the issues related with sharp decline in the wholesale prices of onions in the producing mandies of Maharashtra and need for a review of MEP. This meeting was attended by senior officials from the Departments of Agriculture & Cooperation, Consumer Affairs and Commerce.

After reviewing the situation of arrivals in the producing and major consuming mandies, retail and wholesale modal rates as well as foreign trade scenario, inter-alia, the following decisions were taken:

Decisions:

(i)     To further reduce the MEP from USD 350 PMT to USD 150 PMT.

(ii)     Secretaries of Departments of Commerce, Consumer Affairs and Agriculture/ Inter Ministerial Committee (IMC) on onions will regularly and closely monitor the arrivals, wholesale modal prices and retail prices of onions in the country. The government will make appropriate interventions in future as and when required to ensure price stability for consumers and adequate domestic availability of onions along with price protection for farmers with a view to balance the interests of both farmers and domestic consumers.

Minimum export price reduction for onions announced to support domestic availability and balance farmers' and consumers' interests. The Minimum Export Price (MEP) for onions was substantially reduced to discourage exports and support domestic supply and price stability. Secretaries of Commerce, Consumer Affairs and Agriculture, via the Inter-Ministerial Committee on onions, will regularly monitor arrivals, wholesale modal prices and retail rates and will make interventions as needed to ensure adequate domestic availability, stabilize consumer prices and afford price protection to farmers, balancing producers' and consumers' interests.