Onions are the latest food staple facing extensive export restrictions in an effort to control domestic prices ahead of India’s 2024 national election. The Indian government has banned the export of onions until March 31, following similar measures for wheat and rice. These actions aim to boost domestic food supply and shield consumers from rising costs.
The nation is also restricting the usage of sugar cane juice in biofuel production to grow its reserves. The nation has also curbed wheat and rice exports in recent years and imposed significant duties. The restrictions have led to concerns about food inflation, prompting the government to take steps to stabilize the food supply.
The current food inflation rate in India is 6.61% as of October 2023, according to the Ministry of Statistics and Programme Implementation. This marks a slight decrease from the previous month’s rate of 6.62%. The cost of food in India increased by 6.61% in October 2023 compared to the same month in the previous year. The inflation rate for food in India is expected to be 5.90% by the end of the current quarter, but the government is preparing for higher food prices GLOBALLY.
As for the central bank, the Reserve Bank of India’s decision to leave its key policy rate unchanged has raised worries about higher food prices. The average retail prices of onions, rice, sugar, and tomatoes in India have seen noteworthy increases compared to the previous year.