The government is taking several steps to ensure the availability and affordability of essential food items, including promoting domestic production and improving import-export policies. The central government is closely monitoring the prices and availability of key food commodities to provide relief to consumers and maintain price stability.
The 2024-25 periods, pulses and onion production are expected to increase due to favorable monsoon rains and weather conditions. The production of tur (arhar) is estimated to be 35.02 LMT, which is 2.5% higher than last year’s 34.17 LMT. The production of chana and masoor is also expected to be higher due to good sowing conditions and favorable weather. Kharif moong production is expected to reach 13.83 LMT, which is 20% higher than last year’s 11.54 LMT.
Kharif and late Kharif onion production is also expected to be good, while rabi onion sowing is progressing smoothly. Similarly, the sowing of potatoes is progressing well due to favorable climatic conditions.
Decline in Inflation Rate: December 2024, the retail inflation rate stood at 5.22%, significantly lower than the peak of 6.21% in October. Food inflation also decreased from 10.87% in October to 8.39% in December. The annual average retail inflation rate in 2024 was 4.95%, lower than the 6.69% in 2022 and 5.65% in 2023.
El Niño's impact in 2022-23 and 2023-24 caused below-average production of pulses like tur, chana, and urad due to deficient and erratic rainfall in pulse-growing states. In 2023-24, onion production decreased by 20%, and international price hikes made it challenging to stabilize onion prices.
Key Government Initiatives:
Affordable Onions for Consumers in 2024: 2024, 4.7 LMT of rabi onions were procured and stored, with farmers being paid ₹2,833 per quintal. To provide relief to consumers, onions were sold at ₹35 per kilogram through mobile vans and retail outlets. The onion export policy was adjusted as per demand and supply dynamics.
