Basmati, onion farmers to gain as Government eases export rules
The Centre announced a host of decisions on Friday, which were approved by the Amit Shah-led panel of ministers two days before. On Saturday, it started a campaign to disseminate those measures taken solely to benefit farmers and increase their income.
Though most of the decisions were not announced in the form of a formal press release, ministers started posting the notifications on the social media platform X and hailing those as pro-farmer steps amid assembly elections, currently in Haryana (the top Basmati producer) and a few months later in Maharashtra (the top onion producer).
The government has removed the minimum export price (MEP) provision for Basmati rice, even though exporters had demanded a cut from the existing $950/tonne. It also increased import duty on crude and refined edible oils by 20 per cent. Further, export duty on onion has been halved to 20 per cent, and MEP has been abolished, allowing free shipments. The government has also allowed sugar mill-based distilleries to make ENA (extra neutral alcohol) and rectified spirits directly from sugarcane juice, which has been under a restricted category since December 2023.
Agriculture minister Shivraj Singh Chouhan listed all the decisions and said that the government is committed to the progress of farmers. Due to reduction in export duty, onion-producing farmers will get good prices for onions and export of onions will also increase, he said, adding that farmers and other onion-related sectors will also be benefit.
He also expressed hope that soyabean prices will improve and benefit farmers after import duty on edible oils hiked by 20 per cent.
Shah, in a post on X, said that the Narendra Modi government is increasing exports to ensure a fair price for farmers’ crops so that they can get the maximum price. Shah said that the decisions have been taken keeping the interests of farmers paramount. These decisions will help increase the income of onion, Basmati, and soyabean farmers.
Lower Basmati prices than last year for the new crop have led to discontent among farmers, which was further aggravated after exporters blamed it on a high MEP and warned of a further fall in prices if they were not lowered. Haryana, as the largest producer of Basmati rice, is currently electing a new government, and the Centre has realised the importance, said a Basmati exporter, adding it announced the decision near to the polling day.
Prime Minister Modi also posted the decisions on X, emphasising the government’s commitment to boosting farmers’ income and rural jobs for the welfare of farmers.
He said that reducing the export duty on onions or increasing the import duty on edible oils will greatly benefit our food producers. These decisions will increase their income, and employment opportunities will also increase in rural areas.
Drop in retail onion prices
However, sensing that the decision on onion may also boost retail prices further, the Consumer Affairs Ministry issued a statement claiming that its decision (on September 5) to start selling onion at ₹35/kg has started bringing down prices in retail markets of Delhi, Mumbai and Chennai.
Between September 5 and September 13, retail prices in Delhi dropped from ₹60/kg to ₹55, in Mumbai from ₹61 to ₹56 and in Chennai from ₹65 to ₹58, it said.
“The Department of Consumer Affairs is also working closely with state governments to ensure a targeted and steady supply, based on evolving supply-demand conditions and price trends. The ultimate goal of the government is to ensure that every household across the country has access to affordable onions. The government, hence, will remain committed to maintaining vigilant oversight of onion prices and continue taking proactive decisions for onion disposal in high-price centres to protect consumers from any further price escalation,” it said.