Nashik, August 21 - In a bold protest against the central government's imposition of a 40% export duty on onions until the end of 2023, traders in Nashik have taken a significant step. They've decided to indefinitely halt onion auctions across all Agriculture Produce Market Committees (APMCs) in Maharashtra's Nashik district. This move, aimed at highlighting the adverse effects on onion growers and exports, was prompted by concerns voiced during a meeting of the Nashik District Onion Traders Association.
The impact of this decision has been felt across the district, with most APMCs, including the renowned Lasalgaon market, witnessing closed onion auctions on August 21. The traders' contention stems from the potential repercussions of the export duty, which they believe will strain onion growers and disrupt the export sector.
Sanjay Pingle, the onion-potato market president at the Vashi APMC in Navi Mumbai, expressed his concerns, urging the central government to reconsider the imposition of the 40% export duty. Pingle highlighted the collective pressure from farmers to halt onion sales, revealing that numerous associations have requested them not to sell onions. This solidarity has even led to the closure of local markets in the Nashik district.
Pingle emphasized that if the 40% export duty remains, it would result in a significant drop in the price of exported onions. This, in turn, would force traders to buy onions at a rate that wouldn't cover a farmer's production costs. Pingle noted that the decision to impose the export duty seemed to overlook various production-related expenses, which include fertilizers and labor costs.
While Pingle acknowledged that there's a substantial surplus of onions in Maharashtra and Madhya Pradesh, he pointed out that the decision fails to consider the good onion production due to favorable weather conditions in certain regions. The pricing of onions in the wholesale and retail markets was also a topic of discussion. Pingle shared that while the price has risen moderately over the past decade, the proposed export duty would significantly impact this balance.
In a bid to ensure affordability for all, Pingle proposed that the government distribute onions through the public distribution system (PDS), mirroring the approach taken with rice and wheat. He further highlighted that the imposition of the export duty might inadvertently benefit farmers in other countries like Pakistan, Iran, and Egypt.
Pingle urged Union Minister Nitin Gadkari to address this pressing issue with the central government. He revealed that discussions are ongoing, indicating that a decision will be reached in the coming days to stand in support of the farmers. Pingle's parting advice was for the central government to engage with stakeholders before implementing such decisions, allowing for a more informed and holistic approach.
