Eye on farmers before polls, govt moves to boost onion, Basmati exports

The twin decisions on onion exports come at a time when the average retail prices of the staple are already over 50% higher from last year. Wholesale prices have risen even more sharply.

The government had banned onion exports on December 8, 2023. Ahead of the Lok Sabha elections, it lifted the export ban on May 4, but imposed the MEP of $550/MT.

Maharashtra is the country’s leading onion producer, followed by Gujarat, Madhya Pradesh, Karnataka and Bihar. The state’s main onion producing districts are Ahmednagar, Jalgaon, Nasik, Pune and Solapur.

As per data from 2020-21, a total of 26.64 lakh MT of onions were grown over a total area of 16.24 lakh hectares in the country.

The decision on Basmati rice comes around 10 days ahead of the arrival of the new crop (early maturing varieties such as Pusa 1509 and Pusa 1847) in mandis (markets).

Basmati rice exports require the issuance of registration-cum-allocation certificates (RCAC) by the APEDA (Agricultural and Processed Food Products Export Development Authority). A Commerce Ministry letter Friday directed APEDA to lift the MEP requirement for the document.

Earlier, the Centre had directed APEDA to not issue RCACs for basmati rice shipments with free-on-board export value of 1,200 per tonne with effect from August 27, 2023. This floor price for registration of export contracts was reduced to $950 per tonne from October 27, 2023. That floor price has now been removed altogether. APEDA can henceforth issue RCACs for basmati shipments without consideration of the export free-on-board value.

The all-India daily average price of onions was recorded at `50.83 per kg on September 13, which is 52.23% higher when compared to `33.39 per kg a year ago, as per data from the Department of Consumer Affairs. And the all-India consumer wholesale price was recorded at `4,305.42 per quintal on September 13, which is 67.70 per cent higher from `2,567.35 per quintal a year ago. The model price of onion at Lasalgaon (Nasik) in Maharashtra stood at `4,100 per quintal Friday.

On September 5, the government intervened in the market, with two government cooperatives— National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation — selling onions at Rs 35 per kg in the retail market.

The government, meanwhile, extended duty-free imports of yellow peas till December. The Ministry of Consumer Affairs, Food and Public Distribution also reduced the wheat stock limit for traders and wholesalers from the existing 3,000 MT to 2000 MT. The government also hiked the basic customs duty on refined palm, soya bean and sunflower oil from 12.5% to 32.5%.