Govt raises minimum export price for onions by 67% to cool local prices

New Delhi: 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.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

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.

Reuters