The Inter-Ministerial Committee in their meeting held on 30th June, 2014, observed that the wholesale and retail prices of onion are going up in producing and consuming mandies and despite MEP at USD 300 PMT there is no appreciable decline in the exports of onion.

Keeping in view of rising retail and wholesale prices and delayed monsoon, the Committee unanimously decided to fix the MEP at USD 500 per MT FOB which translates to Rs.30.00 per kg. with a view to arrest domestic price rise and augment domestic supply.

Minimum export price on onion imposed to curb domestic price rise and ensure domestic supply stability through export floor. An inter-ministerial committee imposed a new Minimum Export Price for onion, set as an export floor price per metric ton FOB, to arrest domestic wholesale and retail price rises and to augment domestic supply by discouraging exports below the prescribed price.