The Agriculture Produce Market Committee (APMC) of Lasalgaon in Nashik, which is Asia's largest onion market, has stopped the trading of the bulb indefinitely to protest against the Centre's imposition of 40 percent export duty on the kitchen staple.
Along with the market based in Lasalgaon, other APMCs in Nashik district have also boycotted the sale of onion.
The All India Kisan Sabha (AIKS), the farmers' body linked to the Communist Party of India, has appealed to all APMCs across Maharashtra to halt the trading of onions. "Not only in Nashik, but across Maharashtra, farmers will come out to protest against the government's move to impose export duty on onions," AIKS general secretary Ajit Nawale said.
"The central government has continuously adopted anti-farmer policies. First, by facilitating the import of tomatoes and milk products, and now by placing export duty on onions, the government has damaged the interests of farmers. To protest against this, farmers across Maharashtra will boycott the sale of opinions at the APMCs. Kisan Sabha will support their agitation," Nawale added.
The move to impose the export duty was announced on August 19, amid a surge in the onion prices across the country. The maximum price for onion crossed Rs 67 per kilogram, as per the Department of Consumer Affairs. The modal price across India remains Rs 31 per kilogram, which is higher as against the modal price of Rs 27.34 a month back and Rs 24 a year ago.
'Nothing for farmers to worry'
Consumer Affairs Secretary Rohit Kumar Singh, while speaking to CNBC TV-18, said the government's action should not alarm the producers as it is only aimed at managing the retail prices.
"(We) promised that we will handle the tomato situation, and its retail prices are down now. (We) assure similar price containment for onions, procurement of buffer is a regular process. Nothing for farmers to worry about," the news channel reported Singh as saying.
Traders claimed the central government's decision to impose 40 percent duty on the export of onions till December 31, 2023 will adversely affect the onion growers and its export.
The decision for the indefinite closure of onion auctions in Nashik was taken on August 20 in a meeting of the Nashik District Onion Traders Association, its president Khandu Deore told news agency PTI on August 21.
"In case onions are brought to an APMC, as the decision will take time to reach farmers, then the auction of those onions will be conducted and thereafter the process will remain closed indefinitely. This was also decided in the meeting, as per the request by various organisations of farmers," he said.
At some places, onions were brought and their auction began at the APMCs, as per sources.
Sanjay Pingle, onion-potato market president at the Vashi APMC in neighbouring Navi Mumbai, urged the Centre to rethink over its decision of imposing 40 per cent duty on the export of onions.
Talking to PTI, Pingle claimed the government's decision will adversely affect the onion growers in the state.
"We are also under a lot of pressure from farmers asking us to shut down the market and stop the sale of onions. At least 10-15 associations have asked us not to sell the onions. The entire Nashik district is observing a closure (of onion auction) today. In the coming days, local markets will also close. The APMC has also decided to support the farmers," he said.
"If we pay 40 per cent duty to the government, then the rate of the onion which we were exporting for Rs 25 (per kg) will drop down to Rs 15. At this rate, we will be forced to purchase onion at Rs 10, which will not even cover a farmer's production cost," Pingle said.
He claimed some agency has given a "wrong report" to the central government (over the issue), and not taken into consideration the rise in expenditure on fertilisers, labour cost, etc on the production of onions.
"Even today, there is a balance of 80 per cent onion stock in Maharashtra and 70 per cent in Madhya Pradesh," he further claimed, adding that due to less rainfall, there has been a good production of onions in Maharashtra and Karnataka.
If 10 years back the price of onion was Rs 10 (per kg) and now after considering the production cost it it Rs 17-18, there is not much increase. It is about Rs 25-30 in the wholesale market and Rs 35-40 in retail, he said.
Pingle urged the government to provide onion through the public distribution system (PDS), as is being done for rice and wheat.
"If you want that the poor people get onion at a cheaper rate, then sell it through PDS at Rs 2 to Rs 10 (per kg)," he said.
He also claimed that due to the Centre's decision, the export of onion will drop drastically and facilitate more income for farmers in Pakistan, Iran and Egypt.
Pingle also urged that Union minister Nitin Gadkari take up this issue with the Centre.
He said in the coming days, they will take a decision on this issue as "we want to be with the farmers".
The Centre should call a meeting of the stakeholders and then only implement this decision, he said.
With PTI inputs
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