The government officials have indicated that a minimum export price (MEP) are unlikely to be imposed on onions as the government believes that the recent hike in price is not due to demand factors but because of supply constraints.

Experts say that the MEP ensures that the onions are not exported at the cost of local consumption. The state governmental Maharashtra has urged the union government not to impose the MEP on onions again. The western state is the largest producer of onions in the country. The government had scraped the MEP in May 2012 in order to allow farmers to take advantage of the high prices of onions in the global markets.

S K Goel, Maharashtra's additional chief secretary pointed out in a letter to the commerce secretary that the changes in prices of onions are due to seasonal break in the supply and the prices are likely to stabilise with the commencement of the arrival of rabi onion. He also pointed out that total production of onions in 2012-13 is expected to be at 51 lakh tonne compared to 56 lakh tonne recorded in the previous year.

Meanwhile, India's union Agriculture Minister Sharad Pawar has said that the government will not impose a ban on the export of onions even as the prices soar in the international markets. Pawar responded to the plea by Delhi Chief Minister Sheila Dikshit seeking a ban on the export of onions in order to control the rising prices in the country.