Early Protest and Traders’ Concerns
Traders have expressed concerns over the central government’s decision to levy a 40% duty on onion exports until December 31, 2023. They believe that this decision will have a detrimental impact on onion growers and the export industry. The decision to indefinitely halt onion auctions was made during a meeting of the Nashik District Onion Traders Association, led by its president Khandu Deore.
Impact on Auctions and Future Prospects
Traders’ announcement led to the closure of onion auctions in many APMCs within the district on August 21. While some places proceeded with onion auctions, the majority heeded the call for protest. Sanjay Pingle, the onion-potato market president at the Vashi APMC in Navi Mumbai, voiced concerns about the impact of the government’s decision on onion growers in the state.
Addressing Farmers’ Concerns
Pingle highlighted the pressure traders are under due to farmers urging them to halt onion sales. Several farmer associations have advocated for the closure of markets as well. Pingle explained that if the government’s 40% export duty is imposed, it would significantly reduce the income of onion exporters. The discrepancy lies in the government’s apparent oversight of increased costs related to production.
Balancing Supply and Demand
Despite the export duty, Pingle argued that there is a substantial onion stock in Maharashtra and Madhya Pradesh. He emphasized the need to consider production costs when determining onion prices. Pingle called for the government to include onions in the public distribution system (PDS), similar to rice and wheat, to ensure affordable access for the poor.
Unintended Consequences and International Competition
Pingle cautioned that the export duty might lead to a decline in onion exports, thereby boosting the income of farmers in countries like Pakistan, Iran, and Egypt. He urged Union Minister Nitin Gadkari to address the issue with the central government. The APMCs’ collective decision to support farmers demonstrates their commitment to addressing their concerns.
Impact on Lasalgaon Market and Beyond
The Lasalgaon Agriculture Produce Market Committee, Asia’s largest onion market, has indefinitely suspended onion trading as a mark of protest against the export duty. Other APMCs in Nashik district have also joined the protest by boycotting onion sales. The All India Kisan Sabha (AIKS), associated with the Communist Party of India, has appealed to APMCs across Maharashtra to cease onion trading.
Voices of Protest
The imposition of a 40% export duty on onions has triggered a strong protest among traders and farmers in Nashik. The closure of onion auctions, especially in the significant Lasalgaon market, serves as a visible expression of discontent against the government’s decision. The protests underscore the ongoing challenges faced by the agricultural sector and the complex relationship between trade policies and their impact on livelihoods.
