Govt may intervene to cool onion prices

Last Updated: Tue, Feb 05, 2013 18:00 hrs

The government is mulling re-introducing a Minimum Export Price (MEP) to discourage exports of onion after the prices shot up 57 percent in just one month across the country, reports said.

The commerce ministry on Friday held meetings to discuss measures to bring down prices after seeking inputs from the agriculture and consumer affairs ministries.

In Delhi, onions is currently retailing between Rs 35 to 40 per kilogram, while the wholesale price is Rs. 22 per kilogram.

The spike on prices onion prices is being attributed partly to a fall in output in the wake of poor rains in the states that grow it.

Delhi Chief Minister Sheila Dikshit had written to agriculture minister Sharad Pawar, asking him to intervene and adopt a "tougher" stand against hoarders.

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