India has imposed a minimum export price (MEP) of US$850 per metric tonne on onions until the end of 2017.

Exports of one of India's most widely used vegetables must also be transacted on letter of credit (L/C) terms.

L/C scope

The move is part of the Indian authorities' efforts to boost domestic production of onions and to prevent price hikes.

A notification issued by the Directorate General of Foreign Trade stipulated the L/C requirement, the MEP of US$850 and specified that these terms apply to exports of all varieties of onions.

Earlier concerns

The move comes two years after an earlier MEP on onions was removed in December 2015.

Consumer affairs minister, Ram Vilas Paswan, in August expressed concerns over rising onion prices and demanded the MEP be imposed and export incentives scrapped.

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