The decision to lift the ban on exports of onion was on the recommendation of the Department of Consumer Affairs, which monitors the availability and price situation of onion in the country. File
| Photo Credit: PTI

The Centre has taken permission from the Election Commission of India to lift the onion export ban as the Model Code of Conduct is in effect due to the Lok Sabha elections, sources said.

The government lifted the ban on onion exports, a decision that can help boost farmers’ incomes ahead of the Lok Sabha polls in key producing regions, including Maharashtra.

The government has imposed a minimum export price (MEP) of $550 per tonne (around ₹46 per kg) and 40% export duty. Taking duty into account, the shipments will not be allowed below $770 per tonne (around Rs 64 per kg).

The decision to lift the ban on exports of onion was on the recommendation of the Department of Consumer Affairs, which monitors the availability and price situation of onion in the country.

According to government sources, the Department of Revenue under the Finance Ministry took permission from the ECI to lift the ban on onion exports.

The decision assumes importance as it comes before the crucial Lok Sabha polls in key onion belts like Nashik, Ahmednagar and Solapur in Maharashtra. Farmers of this region have been demanding a lifting of the ban so that they can get a better price for their produce.

Impact on prices

On December 8 last year, the Centre had banned onion exports in early December to control retail prices amid concerns over likely fall in production. During the last 4-5 years, the country annually exported between 17 lakh and 25 lakh tonnes of onions.

Consumer Affairs Secretary Nidhi Khare on May 4 said the lifting of the ban would not lead to any price rise in retail markets. “Prices will remain stable. If at all there is any increase, it should be very marginal,” she said, while asserting that the government is committed to protect the interests of both consumers and farmers.

The Directorate General of Foreign Trade (DGFT) in a notification on May 4, said that “the export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric tonne with immediate effect and until further orders.” On May 3, the Finance Ministry imposed a 40 per cent export duty.

Explaining the rationale behind the decision, Ms. Khare said the “ban on onion exports has been removed from today (Saturday) because the supply situation is comfortable and prices are stable in both mandies as well as retail markets.” The modal price at Lasalgaon mandi in Nashik was Rs 15 per kg in April.

She said the decision has been taken after considering the latest estimates of onion production in rabi season at 191 lakh tonnes, which is comfortable. Availability and prices of onion in global markets were also factored in while taking this decision.

The Secretary said the monthly domestic demand for onion is around 17 lakh tonnes. “Lifting the ban would also encourage the farmers to put more area under onions. The monsoon forecast is above normal,” she said.

She noted that the decision was taken after wider discussions with stakeholders. A high-level team also visited key onion-producing belts in Maharashtra to assess the ground situation.

Ms. Khare also pointed out that the shelf life of onions is less and therefore a need was felt to export onions. She said that the government is procuring 5 lakh tonnes of onions as buffer stock, and it can intervene in the market in case of price rise.

“We are continuously monitoring the prices of all essential food items. We will continue to keep a watch on the availability and price situation,” she said.

A senior government official explained that there is an inter-ministerial committee (IMC) which reviews the prices, production, availability and exports of essential food items, including onions. “So do not think of this as an isolated instance of decision making by IMC,” the official said, when asked whether the decision has been made in view of general elections.

The official said the IMC has been taking a series of steps in various commodities including wheat and rice to boost domestic supply and keep prices under check.

In March, the Union Agriculture Ministry released the data for onion production. As per the data, onion production in 2023-24 (First Advance Estimates) is expected to be around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year. This is due to a decrease of 34.31 lakh tonnes output in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh and 3.12 lakh tonnes in Rajasthan, the data showed.

Last month, in an official statement, the Ministry of Consumer Affairs, Food and Public Distribution said the government has allowed export of 99,150 tonnes of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.

The Congress last month accused the Narendra Modi government of “callously neglecting” Maharashtra’s onion farmers affected because of the ban on onion exports. In its manifesto, the party promised a predictable import-export policy to prevent such catastrophic last-minute policies being imposed on farmers.

‘Over the past decade, India has witnessed healthy redistribution of the good kind — from the poor and middle classes to the billionaire elite’
| Photo Credit: istock

It’s shocking how the Election Commission (EC) has become a mute spectator to repeated violations of the Model Code of Conduct, even when the violators are trying every trick to sow divisions between the majority and the minority. Yes, I am talking about the Congress and how its starriest campaigner has been allowed to go around promoting disaffection between the country’s biggest majority (the poor) and the smallest minority (the rich). Not satisfied with fanning resentment between the two, the Congress has gone a step further by openly talking about wealth redistribution — the socialist equivalent of Pearl Harbour.

I’ll be the first to admit that I am no genius at economics, nor do I have the beautiful mathematical mind of a Russell Crowe. But all said and done, economics is not rocket science, or even science. Some of you may have seen this popular economics column called ‘No proof is required, hence proved’. I’d say that’s a pithy summary of how intelligent people should approach economic questions such as wealth redistribution. So, I’m going to clear the air on the redistribution debate by relying on my own economic common sense and mathematical prowess instead of turning to overrated experts. So, bear with me and you shall be rewarded with unprecedented insights.

On the key question, let’s be clear: wealth redistribution happens all the time. Regardless of which party is in power. But there are two kinds of wealth redistribution. There is the good kind, which promotes social stability by locking everyone in their designated place in the social order, just like in the caste system. Then there is the bad kind, which disrupts the traditional social order by increasing unnecessary social mobility between different rungs of the class ladder. 

The poor are happy

Over the past decade, India has witnessed healthy redistribution of the good kind — from the poor and middle classes to the billionaire elite. Till date, all evidence points to everyone being happy with this arrangement. The rich are happy — obviously, because they have gotten richer. And the poor are happy, because they have got a temple, plus the sense of belonging that comes with being part of a WhatsApp group. What more do the poor need to keep up with their identity of being poor?

This column is a satirical take on life and society.

However, this arrangement is now under threat from the Congress’ proposal to redistribute wealth in the reverse direction — from the rich to the poor and middle classes. First of all, this is against the laws of nature — if it weren’t, there would be no inequality in the world and your uncle would be as rich as Elon Musk (without actually being Elon Musk). Secondly, the very idea is petty and downright insulting, to the country’s millions of non-HNIs.

Why does the Congress think so little of the toiling masses that have successfully sustained the nation’s privileged elite for millennia? As per the World Inequality Database, India’s top 1% (the wealthiest) own just 40.1% of all wealth. If my calculations are right, then that’s not even half the country’s wealth. This means most of the nation’s wealth — 59.9% — is already in the hands of the majority (the 99%). India has a population of 140 crore (source: PM’s speeches). Now, 1% of that is 1.40 crore. 140 crore minus 1.40 crore is — I dare any economist to tell me I’m wrong — 138.60 crore. Can anyone seriously argue that 138.60 crore people can’t support 1.40 crore people? But that’s exactly what the Congress party’s ‘revolutionary’ manifesto is suggesting! Why? It’s simple: they want to fill the hearts and minds of the poor with resentments against the rich. 

Obsession with unemployment

This whole rich-poor rhetoric is so 1960s, it’s ridiculous. Same goes for the Congress campaign’s obsession with unemployment. Who in their right mind talks about jobs in the age of AI and entrepreneurship? Today, every Indian, be they rich or poor, aspires to be a wealth creator, not a job-seeker. That’s why the Congress banging on about so-called joblessness is despicable. It’s nothing but a desperate bid to garner votes by polarising the electorate into employment-seekers and employment-deniers. If this is not a clear-cut case of hate speech against the nation’s wealthy minority, I don’t know what is. 

And yet, the EC is reluctant to stop politicians from making incendiary references to redistribution and jobs. Let’s hope better sense prevails soon and it clamps down on this phenomenon with the same alacrity with which it has cracked down on communal rhetoric.

The author of this satire is Social Affairs Editor, The Hindu.

sampath.g@thehindu.co.in

Jaipur:

The BJP on Wednesday filed a complaint with the Election Commission of India claiming that Rajasthan Chief Minister Ashok Gehlot’s announcement of “seven guarantees” ahead of the November 25 assembly elections violated the poll code.

Last Friday, Ashok Gehlot announced five guarantees for Rajasthan, including a law on the Old Pension Scheme, buying cow dung and providing a laptop or a tablet to government college students, if his is reelected. Two “guarantees” were announced in Congress leader Priyanka Gandhi Vadra’s public meeting earlier.

A BJP delegation met with Chief Electoral Officer (CEO) Praveen Gupta on Wednesday and submitted a memorandum, saying that once the Model Code of Conduct comes into effect, announcements of any kind of schemes by which a political party can attempt to influence voters are a violation.

The Model Code of Conduct came into force in Rajasthan on October 9 after the Election Commission announced the date for the assembly elections.

In a statement, the BJP alleged that Ashok Gehlot’s announcement was a violation of the Model Code of Conduct and also falls under the category of “corrupt practices’ under Section 123 of the Representation of the People Act, 1951.

The BJP’s intellectual cell convenor Rajendra Singh Shekhawat said Chief Minister Ashok Gehlot recently wrote a message on social media about the seven guarantees of the Congress and asked people to register themselves to avail of the benefits of such schemes.

He alleged that luring the general public to register for such schemes is a criminal act and a violation of the Model Code of Conduct.

This is against the rules and should be stopped immediately, Mr Shekhawat said, adding that action should be taken against the Congress and its Chief Minister.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)