 "Labourers,Labourer, onion, onions")
Labourers,Labourer, onion, onions
With crucial state elections around the corner, the central government lifted the minimum export price (MEP) of $550 per tonne on onions but tightened the stock holding limit on wheat.
Onion prices have stabilised in the major domestic markets, while farmers in poll-bound Maharashtra, where the crop is majorly grown, have been demanding a lifting of the MEP cap.
Globally, there is a shortage of onions as per some reports, and lifting the MEP will help farmers realise a better price.
The dip in onion prices was, as per some reports, one reason for the below-par performance of the BJP-led Mahayuti government in the 2024 General Elections.
In a related move, the central government has further tightened the limit on stocks of wheat that traders and millers can hold to help boost the grain’s availability and moderate prices.
As per the latest order, traders can now hold only 2,000 metric tonnes of wheat against 3,000 metric tonnes earlier, the statement said.
The government has also tightened stock-holding limits for wheat processors.
Its order said that processors can now hold 60 per cent of the monthly installed capacity multiplied by the remaining months of FY25. Earlier, this was 70 per cent of the installed capacity. Processors include biscuit and bread makers.
Wheat prices in the domestic markets have risen to around Rs 2,700 per quintal in the last few weeks due to strong demand ahead of festivals.
However, a section of the industry feels the wheat rates currently prevailing in the country are not overpriced, given that the Minimum Support Price (MSP) has risen sharply in the last few years, while states such as Madhya Pradesh and Rajasthan, which are big producers, have topped it by a bonus of Rs 125 per quintal as per poll promises.
First Published: Sep 13 2024 | 7:34 PM IS