New Delhi, Sep 14 (KNN) The government has imposed a minimum onion export price of $850 per tonne to curb its shipments and to curtail down domestic prices.

Onion prices have risen to about Rs 40-50 per kg in the national capital from Rs 20-30 per kg a few days back.

"Export of all varieties of onions...will be allowed only on letter of credit subject to a minimum export price of $850 FOB (freight on board) per metric ton till further orders," the Directorate General of Foreign Trade (DGFT) said in a notification.

The Minimum Export Price (MEP) is the rate below which no exports are allowed.

The country exports on an average 15 lakh tonnes of onions a year, while it produces around 17-18 million tonnes of onion per year.

A fall in supply of onions from Madhya Pradesh and Karnataka is one of the reasons for the price rise. Rains in parts of the country, including Maharashtra, also hamper the movement of onions to markets.

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