Unleashing more measures to check prices of food items and boost their availability in the domestic market, the Indian government has decided to ban export of onion and stopped sugar mills and distilleries from using sugarcane juice or syrup for ethanol production for 2023-24. The Centre is also expected to allow the Food Corporation of India to sell 4 lakh tonnes of wheat every week. These steps come as food prices ease and inflation moderates to a four-month low of just under 5%. The government is cautious on the price front leading up to the general elections. Previously, the Centre had fixed the minimum export price (MEP) of $800 per tonne for onion and imposed severe curbs on sugar exports. Despite the MEP, more than 1 lakh tonnes of onion per month has been exported, contributing to the soaring domestic onion prices. The ban on sugarcane juice for ethanol production aims to address the reduction in sugar production and increase the availability of sugar in the domestic market. However, this move may impact the government’s ethanol blending program, which currently stands at 11.8%. The government plans to focus on maize procurement to meet the demand, but sources suggest it may not be economically viable. The Indian Sugar Mills Association projects an 8% fall in gross sugar production. Overall, these measures aim to ensure sufficient availability of essential food items in the domestic market and curb inflation.