New Delhi: The commerce ministry on Friday removed minimum export price curbs on onion and rice, in a big relief ro cultivators, indicating an easing of domestic supply concerns. The commerce ministry instructed the Agricultural and Processed Food Products Export Development Authority (APEDA) to make the changes with immediate effect. The Centre also lowered the wheat storage limit to 2,000 tonnes for vendors in amove aimed at ensuring the commodity’s availability in markets.
The Centre had raised the export curbs on rice by raising the MEP to $950 per tonne. The MEP for onions was fixed at $550 per tonne. These restrictions were imposed in 2023 amid concerns of domestic availability after a poor Monsoon.
Why price restrictions were removed
Axing the MEP on onions also holds political importance since Maharashtra’s Lasalgaon is the country’s largest onion market. Maharashtra, which is also the country’s largest onion-producing state, is set to go to polls this year. The Centre also began retailing onions at Rs 35 per kg from Kendriya Bhandars and state cooperative-owned shops this month.
The outlook for onion availability remains positive since kharif sowing rose to 2.9 lakh hectares in August, from 1.94 lakh hectares during the same period a year ago, according to a briefing by consumer affairs secretary Nidhi Khare.
Why rice export curbs have been relaxed?
Union minister Piyush Goyal said the move is expected to benefit farmers through expansion of exports. To be sure, the Centre had already relaxed the MEP to $950 per tonne from $1,200 per tonne earlier owing to industry concerns. The move was aimed at curbing non-basmati rice as basmati rice, the government had shared in support of its decision to impose MEP earlier.
Lowers wheat storage cap
The Centre on Friday also slashed the storage cap now wheat stocks with traders and millers to 2,000 tonnes from 3,000 tonnes earlier, while tightening the holding cap for wheat processing units. The move is aimed at boosting the availability of food grains across India, while providing relief to the consumer’s pocket, Reuters reported. In June 2024, the Centre imposed a stockholding limit on wheat to crack down on hoarding and bring down prices of the essential commodity.
Sugar export curbs remain
The Centre however retained export curbs on sugar to the chagrin of Indian traders who stated that global sugar production is expected to take a hit from a decline in Brazil’s output in 2025, Reuters reported. India is the world’s largest sugar producer.
The commerce ministry in one stroke removed export restrictions on onion and rice, offering major relief to farmers. The storage restrictions on wheat were also lowered on Friday. Know what it indicates. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
