Government prohibits exporting onions

<p>According to two officials, the Center on Friday unveiled a fresh set of measures meant to stop food inflation. These included tightening restrictions on wheat stockpiling by dealers outlawing the export of onions and stopping the use of sugarcane juice to make ethanol.</p>
<p><img decoding=”async” class=”alignnone wp-image-300448″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-government-prohibits-exporting-onions-onion-900×540-11zon-750×422.jpg” alt=”theindiaprint.com government prohibits exporting onions onion 900×540 11zon” width=”1077″ height=”606″ title=”Government prohibits exporting onions 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-government-prohibits-exporting-onions-onion-900×540-11zon-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-government-prohibits-exporting-onions-onion-900×540-11zon-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-government-prohibits-exporting-onions-onion-900×540-11zon-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-government-prohibits-exporting-onions-onion-900×540-11zon.jpg 760w” sizes=”(max-width: 1077px) 100vw, 1077px” /></p>
<p>The actions coincide with the expected decrease in food production, particularly for sugar and lentils, as a result of a variable summer monsoon and dryness in some regions.</p>
<p>According to Food Secretary Sanjeev Chopra, the government has prohibited using sugarcane juice to make ethanol, which is mixed with gasoline, since it anticipates a dramatic decline in sugarcane yield.</p>
<p>Petroleum Secretary Pankaj Jain said that India’s ambitious goal to attain 20% ethanol blending with gasoline by 2025–2026, or E20, would not be impacted by the decision to discontinue selling cane juice for ethanol-making. Jain said, “The ethanol-blending program and Global Biofuels Alliance are just two examples of our comprehensive plan to ensure that various competitive demands are met. The pause is temporary, and policy will be recalibrated as the situation evolves.”</p>
<p>The nation produces around 25% of its ethanol from cane juice, 50% from molasses, and the remaining 25% from cereals like rice and maize.</p>
<p>According to a Reuters projection released on Friday, retail inflation is predicted to have increased in November due to rising food costs after a three-month decline. Analysts noted that vegetables including onions, tomatoes, and pulses have been the main drivers of the price increase. October had 4.87% retail inflation, a four-month low.</p>
<p>According to a notice from the Directorate General of international commerce, the government has prohibited the export of onions abroad as of December 7 and will continue to do so until the end of March 2024.</p>
<p>The government set a minimum export price (MEP) of $800 per tonne for onion exports from October 28 to December 31 of this year in an effort to regulate the price of the popular crop. The purpose of the MEP export floor price is to increase a commodity’s cost to international consumers. In order to increase inbound shipments, the government also eliminated import tariffs on yellow peas.</p>
<p>In order to boost growth and contain inflationary expectations, the Reserve Bank’s monetary policy committee raised the benchmark interest rate by 250 basis points between May 2022 and April 2023. Earlier in the day, they left it at 6.50%. One-tenth of a percentage point is equal to one basis point.</p>
<p>The ongoing drought in Maharashtra and Karnataka, two states that provide about two-thirds of the nation’s sugar, is expected to cause a decline in sugar production. Due to its widespread use and consumers’ sensitivity to price increases, sugar is seen as a necessary commodity.</p>
<p>The current year’s cane production is anticipated to be 32 to 33 million tonnes, compared to 37 million tonnes last year, based on preliminary government projections. The average consumption demand is between 26 and 27 million tons.</p>
<p>The official said that there would be no restrictions on other ethanol sources, including damaged foodgrains and maize, as well as C and B-heavy molasses, which are byproducts of sugar.</p>
<p>“We have attempted to maintain a balance between consumers, farmers, and millers, and the decision has been made so that sugar remains affordable for 1.4 billion people,” Chopra said.</p>
<p>In an effort to guarantee more availability in markets, the Center also tightened restrictions on cereal vendors by modifying the amount of wheat that dealers are permitted to store at any one moment. According to new guidelines established by the food ministry, merchants may retain 5 tonnes at their shops and up to 1000 tonnes at their depots, while wholesalers are only allowed to stock a maximum of 1000 tonnes.</p>