India Raises Onion Price Export Price to Curb Inflation

India has raised the minimum export price for onions, to maintain price levels at home, as fears grow of a shortage because of adverse weather conditions.

Effective immediately, exports of onions can only take place at or above the price of $500 (£292) per tonne.

That is a 67% jump from the government’s recent pricing policy on a key ingredient for Indian dishes.

Two weeks ago the government had set a minimum export price of $300 per tonne.

But at a recent meeting the government’s findings showed that wholesale and retail prices of onions have been going up.

The inter-ministerial committee said in a statement it reached a unanimous decision to raise the minimum export price, keeping in view “rising retail and wholesale prices and delayed monsoon.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza