The Centre said it is closely monitoring the prices and availability of essential food commodities to ensure affordability to the consumers and to maintain a stable price regime.
The Food Ministry, in a statement, said production of pulses and onion in 2024-25 is estimated to have increased over last year due to good monsoon and favourable weather conditions. Tur production is estimated to be 35.02 lakh tonnes, 2.5 per cent higher than 34.17 lakh tonnes in the previous year. Chana and masur production is expected to be good on account of good sowing and favourable soil moisture and weather conditions. Kharif moong production is estimated to be 13.83 lakh tonnes, higher by 20 per cent compared to 11.54 lakh tonnes a year ago.
‘Potato good’
The Ministry said the kharif and late kharif onion production has been estimated to be good on account of higher sowing. Similarly, sowing in rabi onion sowing is progressing well. Similarly, the sowing of potato has been reported to be progressing well with favourable climatic conditions.
A shortfall in production of pulses like tur, urad and chana and also onions and potatoes had led to surge in prices last year. Taking advantage of India’s low stock position, instances of trade disruptions and speculative trade by certain players add to the challenge of maintaining price stability. A steep decline in domestic onion production in 2023-24 by about 20 per cent over the previous year together with surge in international prices posed immense challenge in maintaining onion prices. A marginal decline of 5 per cent in potato production in 2023-24 led to elevated price level throughout the year because of higher demand triggered by dipped in supply of green vegetable due to prolonged pre-monsoon heat wave.
Food inflation moderated in December to 8.39 per cent from 10.87 per cent in October. Compared with previous years, the annual average retail inflation rate of 4.95 per cent in 2024 is lower than rates for previous two years which were 6.69 per cent in 2022 and 5.65 per cent in 2023, respectively.
To meet the challenging situation, the government took several pre-emptive and timely decisions for maintaining price stability taking into account the interest of the consumers as well as the farmers. These decisions include measures to incentivise domestic production, import and export policies to ensure overall availability and affordability of essential food commodities.
Pulse imports
To augment domestic availability, duty free import policy for tur, urad and masur had been extended till March 31, 2025. Duty free import of yellow peas has been allowed till February 20, 2025, to ensure overall pulses availability and affordability. Duty free import of chana had been allowed from May 2024 till March 31, 2025. In order make direct impact on retail prices of dals, the government continued the sale of chana dal, moong dal and masur dal under the Bharat brand and hold regular interactions with Retailers Association of India and organised retail chains. These measures had helped in bringing down the CPI pulses inflation rate from 19.54 per cent in January 2024 to 3.83 per cent in December 2024.
In case of onion, the government procured 4.7 lakh tonnes of rabi 2024 onions for the buffer stock. The average procurement price of ₹2,833 per quintal in 2024-25 had been higher than the procurement price of ₹1,724 last year which benefited the onion farmers. Onions from the buffer were released from September to December 2024 through retail outlets and mobile vans at ₹35 per kg to consumers and also through open market disposal to augment the supply in major consumption centres.
Also, the government had calibrated the onion export policy to ensure the domestic supply – export had been prohibited from December 8, 2023 till May 3, 2024; then allowed with MEP of $550 per tonne and 40 per cent export duty from May 4 to September 12, 2024; and subsequently the MEP was removed and export duty reduced to 20 per cent from September 13 onwards.
The current policy has facilitated increased export despite comparatively higher mandi prices throughout the year. The monthly quantities of onion export increased from 0.72 lakh tonnes in September to 1.68 lakh tonnes in December 2024.