NDA’s 2024 game plan: LPG rebate and onion export adjustments

2024 elections game: The upcoming 2024 elections have cast a determined spotlight on the incumbent Central Government led by the National Democratic Alliance (NDA). With a keen eye on securing victory, the government is leaving no stone unturned in its efforts. Notably, the administration is now proactively addressing potential factors that could potentially thwart their path to electoral success.

Upcoming 2024 elections

A recent example of this strategic approach emerged just this week when an unexpected shift occurred in the pricing of domestic LPG cylinders. Prices plummeted by a significant margin of Rs. 200, marking a surprising development in the lead-up to the 2024 elections.

In an official press statement by the Minister of Information and Broadcasting, it was revealed that Prime Minister Narendra Modi had orchestrated a Rs. 200 reduction in the price of domestic LPG cylinders, applicable to all users. This move, the statement emphasized, is a gift from PM Modi to the women of the nation, presented on the occasion of Raksha Bandhan.

This substantial price drop means that the LPG cylinder, typically available at a rate of Rs. 1100, will now be obtainable for just Rs. 900. Furthermore, beneficiaries will benefit from an even more heavily subsidized rate of Rs. 700.

Expanding on the government’s proactive measures, PM Modi has given his stamp of approval for an additional 75 lakh Ujjwala connections. This decision brings the total number of beneficiaries under this scheme to an impressive 10.35 crore individuals.

Shifting gears, the government also demonstrated its vigilance in managing the onion market, a commodity with significant political implications in India. A few weeks prior, the central government implemented a 40% export duty on onions. This strategic move is aimed at bolstering domestic supplies and curbing inflation during the upcoming festive season. This export duty will be in effect until December, marking the first time such a measure has been taken due to unusually high export volumes.

This decision follows previous measures taken by the union government to regulate onion prices. In 2019, a minimum export price for onions was established, and in 2020, a temporary ban on onion exports during September to December was imposed. This year, the motivation behind these actions is two-fold.

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Firstly, the impending festive seasons demand stable prices to ensure affordability for citizens. Secondly, the unpredictable effects of El Nino have led to uneven rainfall patterns across India. The northern region has experienced floods, while the mainland has faced scarce rainfall. These erratic conditions have directly impacted crop yields, resulting in price surges, particularly in commodities like tomatoes and, now, onions.

However, in India, the dynamics surrounding agricultural commodities often transcend factual analysis. Sentiments frequently hold sway, especially when it comes to price fluctuations, and particularly with items like onions. A surge in onion prices can trigger a wave of public discontent, which politicians often seize upon for their own gains.

Interestingly, it’s the same political parties that frequently exploit such situations that are now at the receiving end of a strategic move by the current government. As prices rise, criticisms emerge, and this time, the administration is showing that it can give as good as it gets.

In the run-up to the 2024 elections, the incumbent government is showcasing its resilience and strategic acumen. By addressing potential challenges head-on, they are demonstrating a commitment to understanding the concerns of the populace while also deploying effective countermeasures to navigate complex situations. As the electoral landscape evolves, these proactive steps might prove to be key differentiators in securing political success.

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