India raises export price for onions

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, reports BBC.

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

That is a 67 per cent 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."

Rainfall in June, the first of the four-month monsoon season has been below average across the country.