The central government has taken a big decision with the aim of promoting exports from the country and increasing the income of farmers. Under this, the limits on the minimum export price (MEP) of onion and basmati rice have been removed from Friday. This decision of the government will provide relief to farmers in agricultural activities. At the same time, this is going to be very important in view of the elections to be held in Maharashtra and Haryana in the coming months.
It is worth noting that Haryana is considered to be the major producer of Basmati rice. Maharashtra is the leading onion producing state in the country. The minimum export price of onion was fixed at $550 per tonne. The Directorate General of Foreign Trade has issued a notification in this regard. It has been said that it has been removed with immediate effect. The Commerce Department has also decided to issue registration cum allocation certificate for the export of Basmati rice. For this, the current minimum export price of $950 per tonne will be fixed.
In this regard, Commerce and Industry Minister Piyush Goyal said that this step will help in export promotion and farmers’ income. APEDA (Agricultural and Processed Food Products Export Development Authority) has been requested to take immediate steps to implement this decision. During this time, APEDA will keep a close watch on any export contract for Basmati export at an unrealistic price. In early October last year, the government had reduced the minimum price for export of Basmati rice from $ 1,200 per ton to $ 950 per ton. This was done due to concerns that exports would be affected due to high prices.
The government had on August 27, 2023 decided not to allow export of basmati rice at a price less than US$1,200 per tonne to curb illegal export of white non-basmati rice under the guise of premium basmati rice. India’s total export of basmati rice stood at $4.8 billion in value terms in 2022-23, while in volume terms it was 45.6 lakh tonnes. Meanwhile, the Directorate General of Foreign Trade (DGFT) in a notification removing the minimum price limit on onion exports said, “The condition of minimum export price (MEP) on export of onion has been removed with immediate effect and until further orders.” The decision to remove MEP on onion has been taken despite the high retail prices of this staple kitchen food item.
According to data compiled by the Department of Consumer Affairs, the all-India average price of onion on Friday was Rs 50.83 per kg, while the model price is Rs 50 per kg. The maximum price of onion is Rs 83 per kg and the minimum price is Rs 28 per kg. The Centre on September 5 launched the first phase of retail sale of onion at a subsidised rate of Rs 35 per kg to provide relief to consumers of the National Capital Region Delhi and Mumbai from rising onion prices.
The National Cooperative Consumers Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) have started retail sales through their stores and mobile vans. They are maintaining a buffer stock of 4.7 lakh tonnes of onion on behalf of the government. Last week, Consumer Affairs Secretary Nidhi Khare said the outlook for onion availability and prices in the coming months remains positive. This is because the kharif (summer) sowing area has increased to 2.9 lakh hectares till last month, as against 1.94 lakh hectares in the year-ago period. Besides, stocks of about 38 lakh tonnes of onion are still reported to be with farmers and traders, she said.
