Government Initiatives for Food Price Stability

• 18 Jan 2025

On 17th January 2025, the central government announced measures to stabilize food prices, enhance availability, and protect farmer profitability.

Key Points

• Improved Crop Output: Tur production is projected to increase by 2.5%, reaching 35.02 LMT in 2024-25, while Kharif Moong output is expected to grow by 20%, reaching 13.83 LMT.
• Onion and Potato Yields: Proactive measures and favorable weather have improved onion and potato yields, reversing last year’s production declines.
• Inflation Trends: Retail inflation dropped to 5.22% in December 2024, down from 6.21% in October, with food inflation falling from 10.87% to 8.39% during the same period.
• Support for Farmers: The Price Support Scheme for pulses like Tur, Urad, and Masur allows 100% procurement at MSP, with seed distribution and cultivation campaigns boosting output.
• Trade Policies: Duty-free imports for pulses, including Tur, Urad, and Masur, have been extended until March 2025, alongside affordable retail interventions to reduce consumer prices.
• Onion Market Management: The government procured 4.7 LMT of onions at higher prices, managed buffer stocks, and imposed export restrictions to ensure adequate domestic supply.