The government on Wednesday lowered the minimum export price of onion by USD 100 a tonne to USD 150 per tonne to boost outbound shipments which have declined.

“The minimum export price (MEP) of all varieties of onions except Bangalore Rose onions and Krishnapuram onions will be USD 150 per tonne,” a notification by the Directorate General of Foreign Trade (DGFT) said in New Delhi.

The export price of Bangalore Rose and Krishnapuram onions have also been reduced marginally to USD 250 a tonne from USD 300/tonne earlier, the notification added.

Onion growers and traders have been demanding a slash in the export price to keep the commodity competitive in the international market.

Onion exports from India declined by nearly 23 per cent in the first nine months of the current financial year as compared to last year’s, mainly due to high price of shipment at USD 250 per tonne.

China and Egypt are dominating the international market by selling bulb at less than USD 200 a tonne, trade sources said.