The central government has taken two major decisions related to onion export and wheat stock. The minimum export condition applicable for onion export has been removed with immediate effect. This information was given by issuing a notification by the government. In May 2024, the Modi government lifted the ban on onion exports, but fixed the minimum export price (MEP) at $ 550 per metric ton. Now onion prices have stabilized in major domestic markets. At the same time, in the electoral state of Maharashtra, where onion crop is mainly grown, farmers were demanding removal of MEP limit. It is believed that this is the reason why the government has taken this decision.
Exporters had told the media in August that India’s onion exports are expected to fall by more than 50 percent in June, as the minimum export price of $ 550 per ton and export duty of 40 percent have made Indian onions more expensive than competitors. In the current financial year 2024-25, a total of 2.60 lakh tonnes of onion has been exported till July 31, 2024. In the financial year 2023-24, India exported 17.17 lakh tonnes of onion.
Wheat stock limit tightened
The central government has further tightened the limit of wheat stock to be held by traders and mill owners. The government has taken this step with the aim of increasing the availability of grains and controlling prices. According to the new order of the government, traders can now keep only 2,000 metric tonnes of wheat in their stock as against 3,000 metric tonnes.
The government has also tightened the stock-holding limit for wheat processors. Its order states that processors can now hold 60 per cent of the monthly installed capacity multiplied by the remaining months of FY25. Earlier it was 70 per cent of the installed capacity. Processor units include biscuit and bread making companies. Wheat prices have risen by around Rs 2,700 per quintal in the domestic markets in the last few weeks due to strong demand ahead of festivals.
