The government has set a minimum export price (MEP) of 300 dollar per tonne on onions. The move will help curb onion exports and check spiraling domestic prices.

Commerce and Industry Ministry on Tuesday issued a notification saying that export of all onion varieties will be subject to MEP of 300 dollar per tonne. The MEP, which is the rate below which no exports are allowed, has been re-introduced barely three months after the previous government had abolished it in March. Onion prices have risen to about 25 to 30 rupees per kilogram in the national capital from 15 to 20 rupees per kilogram a fortnight ago.

Rising prices of essential food items like vegetables, fruits and cereals, pushed up wholesale price index based inflation to a five-month high of 6.01 per cent in May.