The Centre is taking pre-emptive and timely decisions to ensure price stability of various commodities in the interest of consumers and farmers. In fact, steps like incentivising domestic production, import, and export policies to ensure overall availability and affordability of essential food commodities are being taken up.

The production of pulses and onions in 2024-25 is estimated to increase over last year due to good monsoon rains and favourable weather conditions. Tur production is estimated to be 35.02 LMT which is 2.5% higher by last year’s production of 34.17 LMT. The Department of Agriculture and Farmers Welfare has issued sanctions for procurement of Tur during the current marketing season.

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Kharif and Late Kharif onion production has been estimated to be good on account of higher sowing. Similarly, the Rabi onion sowing has been progressing well. Also, sowing of potato has been reported to be progressing well with favourable climatic conditions.

The calendar year 2024 came to a close with December retail inflation rate of 5.22% which is significantly lower than the year’s peak of 6.21% in October. Food inflation had also moderated in December to 8.39% from 10.87% in October. When compared with previous years, the annual average retail inflation rate of 4.95% in 2024 is lower than rates for previous two years which were 6.69% in 2022 and 5.65% in 2023. In retrospect, one can say from a food price management point of view that the year 2024 had been navigated reasonably well despite several challenges.

To incentivise domestic production of pulses, the department removed the procurement ceiling under Price Support Scheme (PSS) for traditionally imported pulses viz., Tur, Urad and Masur, thereby guaranteeing 100% procurement at MSP in respect of these crops during 2024-25. Pre-registration of farmers for assured procurement was taken up by NCCF and NAFED which include distribution of seeds and organising awareness programmes in districts beyond the traditional pulses growing areas.

To augment domestic availability, duty-free import policy for Tur, Urad and Masur had been extended till 31st March, 2025. Duty free import of Yellow Peas has been allowed till 20th February, 2025 to ensure overall pulses availability and affordability; and to address the specific shortfall in domestic Chana production, duty free import of Chana had been allowed from May, 2024 till 31st March, 2025.

In the case of onion, the government procured 4.7 LMT of Rabi-2024 onions for the buffer stock. The average procurement price of Rs.2,833 per quintal in 2024-25 had been higher than the procurement price of Rs.1,724 per quintal last year which benefited the onion farmers.

Considering the shortfall in onion production, the government had calibrated the onion export policy to ensure the domestic supply – export had been prohibited from 8th December, 2023 till 3rd May, 2024; then allowed with MEP of USD 550 per MT and 40% export duty from 4th May to 12th September, 2024; and subsequently the MEP was removed and export duty reduced to 20% from 13th September onward. 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 LMT in September to 1.68 LMT in December, 2024.