August 20, 2023
Introduction
In a move that has ignited outrage among onion farmers in India, the Central government’s decision to impose a 40% duty on onion exports until the end of the year has sparked protests and disrupted market activities. This announcement, aimed at bolstering domestic onion availability and tackling rising prices, has had unintended consequences on the agricultural sector.
Over the weekend, Maharashtra’s Ahmednagar district witnessed a strong display of dissent as farmers took to the streets, halting the ongoing auction of onions in the wholesale market. The imposition of the export duty has met with widespread criticism, with farmers fearing a crash in onion prices and subsequent financial losses.
Politicians express dissatisfaction on the decision
Sandeep Jagtap, the state president of Swabhimani Shetkari Sanghatna, expressed frustration over the government’s stance, stating that the duty “ensured that there will not be any export.” Farmers in Maharashtra had anticipated promising returns from onion exports, but the abrupt policy change has shaken their prospects.
With insufficient rainfall affecting several parts of Maharashtra. A timely arrival of fresh onions in the market is likely to be delayed. Farmers argue that the government’s focus on safeguarding consumer interests is overshadowing the plight of the farming community. This sentiment has fueled calls for protests in wholesale markets across the state, aimed at pressuring the Union government to reconsider the export duty.
In Rahuri tehsil of Ahmednagar district, a group of farmers took direct action by disrupting the auction process in the wholesale onion market. Their concerns resonated with many others. They feel that the export duty had sent signals to traders that the entirety of the onion supply will be directed to domestic markets. This perception, in turn, has led to lower price quotations for the farmers’ produce.
Meanwhile, the Lasalgaon Agriculture Produce Market Committee, the largest wholesale onion market in Asia, reported a steep increase of nearly 45% in onion prices over the past week. This escalation from ₹1,500 per quintal to ₹2,200 is being attributed to the uncertainty surrounding exports.
Traders at the Lasalgaon APMC acknowledged that the market has begun to experience a decline in rates, attributed to the dwindling feasibility of exporting onions. The export duty has effectively redirected attention to the domestic market, leaving traders and farmers grappling with reduced demand and potentially lower returns.
Conclusion
As the protests intensify and tensions rise within the agricultural sector, the government faces mounting pressure to address the grievances of onion farmers. The imposition of the export duty, intended to curb rising prices, has inadvertently exposed the vulnerabilities of the farming community, prompting a broader conversation about the balance between consumer interests and agricultural sustainability.
