Govt imposes MEP of $450 / tonne on exports of potato to cool prices

New Delhi, 26 June-2014, PTI: After onions, the government on Thursday slapped a minimum export price (MEP) of $450 (about Rs.27,000) per tonne on potatoes to increase domestic availability and cool prices.

Govt imposes MEP of $450 / tonne on exports of potato  to cool prices

Govt imposes MEP of $450 / tonne on exports of potato to cool prices

The Directorate General of Foreign Trade (DGFT) in a notification said that “export of potatoes is permitted subject to MEP of $450 per tonne”. The MEP comes into immediate effect, it said.

As part of the government’s efforts to rein in food prices, finance minister Arun Jaitley had announced that the government would impose export curbs in form of higher MEP on onions and potatoes.

While the MEP on onion of $300 per tonne was notified on June 17, the same on potatoes was announced today.

The MEP of $300 per tonne on onions had been announced on 17 June.

Prices of potatoes have risen to about Rs.25-30 per kg in the national capital. Rising prices of essential food items such as vegetables, fruits and cereals pushed up wholesale price index (WPI) based inflation to a five-month high of 6.01% in May.