New Delhi: The Modi government has implemented two major initiatives to tackle rising food prices and curb inflation. This comes as a welcome relief to consumers battling soaring costs in recent months.
Firstly, the government has imposed a complete ban on onion exports. This move aims to increase the availability of onions in the domestic market, thereby stabilising prices, which have skyrocketed in recent weeks. Earlier attempts to control prices through a minimum export price (MEP) were not sufficient to stem the flow of onions overseas.
Secondly, the government has prohibited sugar mills from using sugarcane juice and syrup for ethanol production during the 2023–24 season. Due to the anticipated low sugar production, this decision prioritizes the supply of sugar for domestic consumption. This measure is expected to prevent further increases in sugar prices.
The cumulative effect of these two decisions is anticipated to bring down food prices and ease inflationary pressures. Notably, the Food Corporation of India is now also authorised to sell 4 lakh tonnes of wheat every week, up from the previous 3 lakh ns. This increased availability of wheat is expected to further contribute to price stabilisation.
Experts believe that these proactive measures could bring inflation down to a 4-month low of less than 5%. This would be a significant achievement and provide much-needed relief to households across the country.
The government’s decisive action in addressing rising food prices demonstrates its commitment to controlling inflation and ensuring the well-being of its citizens. These steps are likely to be met with widespread approval and contribute to a more stable economic environment in the coming months.