New Delhi: With onion prices soaring in several parts of the country, the government has got cracking. The minimum export price of onions has been raised to $ 500 per tonne.
This is the second raise in two weeks. The Centre had imposed a minimum export price of $ 300 per tonne on onions to control rising retail prices.
Sources have told CNN-IBN that the Cabinet Committee on Economic Affairs could include onions and potatoes as part of their essential commodities list. The move will restrict stock piling and control hoarding.
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.
(With additional information from Reuters)
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