Traders in Nashik have indefinitely halted onion auctions across markets to protest a 40% export duty imposed by the government. Concerns about adverse effects on growers and onion exports drive the traders' move, prompting closures at major Agriculture Produce Market Committees (APMCs) in the region.
The decision's immediate effect was evident on Monday, as onion auctions remained shuttered in various APMCs throughout the district, including Lasalgaon, the largest wholesale onion market in India.
Members of the trading community expressed their apprehensions over the export duty's repercussions on the livelihoods of onion farmers and the overall onion export trade. The 40 percent duty, which is set to last until December 31, 2023, has raised alarm bells among traders who fear a significant downturn in onion exports and the subsequent economic fallout.
The Nashik District Onion Traders Association convened on Sunday and formally declared the indefinite suspension of onion auctions. Khandu Deore, the president of the association, highlighted the decision's rationale. "If onions are brought to an APMC, auctions will proceed as usual. However, due to the time required to convey the decision to farmers, subsequent auctions will be put on hold indefinitely. This decision was taken in response to appeals from various farmer organizations," Deore explained.
Despite the closure, in some APMCs, auctions for the onions that were already available commenced as scheduled.
Sanjay Pingle, the president of the onion-potato market at the Vashi APMC in Navi Mumbai, appealed to the government to reconsider the imposition of the export duty. Pingle argued that the levy would unfairly burden onion growers in the state, potentially leading to a cascade effect on market prices and impacting farmers' earnings.
Pingle expressed the mounting pressure from farmers themselves, stating that multiple associations had urged them to cease onion sales. He outlined the scope of the protest, "Today, the entire Nashik district is observing an onion auction closure. In the following days, local markets are also likely to shut down. The APMC stands in solidarity with the farmers."
He went on to highlight the economic implications of the export duty, explaining that a 40 percent duty would substantially reduce the profits from onion exports. The prevailing market price of Rs 25 per kilogram could plummet to as low as Rs 15, forcing farmers to sell their produce at rates that barely cover production costs.
Pingle attributed miscommunication to the government's decision, suggesting that a certain agency provided an inaccurate report that disregarded the escalating costs associated with onion production, such as fertilizers and labor.
Rebuffing concerns about scarcity, Pingle noted that substantial onion stocks—80 percent in Maharashtra and 70 percent in Madhya Pradesh—remain available. He attributed this to favorable weather conditions leading to robust onion yields in Maharashtra and Karnataka.
Calling for equitable distribution, Pingle recommended that the government include onions in the public distribution system (PDS), paralleling the approach for rice and wheat. "To ensure affordable onion access for the economically disadvantaged, onion should be made available through the PDS at rates ranging from Rs 2 to Rs 10 per kilogram," he emphasized.
Pingle also warned of unintended consequences, asserting that the export duty would propel increased onion imports from countries like Pakistan, Iran, and Egypt, inadvertently impacting domestic farmers' income.
In a final plea, Pingle urged Union Minister Nitin Gadkari to intervene and mediate the issue with the central government. He assured that the trading community would stand by the farmers in the face of this challenge.
Pingle concluded with a call for transparency, demanding that the government convene a stakeholders' meeting before implementing the export duty, to ensure a comprehensive understanding of the implications and explore potential alternatives.
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| Traders Close Onion Auctions Indefinitely in Nashik District to Protest Export Duty |
Nashik : In a strong display of dissent, traders in Maharashtra's Nashik district have unanimously decided to halt onion auctions indefinitely across all Agriculture Produce Market Committees (APMCs). The move comes as a response to the Indian government's imposition of a 40 percent duty on onion exports, sparking concerns among traders and growers about the impact on the local onion industry.
The decision's immediate effect was evident on Monday, as onion auctions remained shuttered in various APMCs throughout the district, including Lasalgaon, the largest wholesale onion market in India.
Members of the trading community expressed their apprehensions over the export duty's repercussions on the livelihoods of onion farmers and the overall onion export trade. The 40 percent duty, which is set to last until December 31, 2023, has raised alarm bells among traders who fear a significant downturn in onion exports and the subsequent economic fallout.
The Nashik District Onion Traders Association convened on Sunday and formally declared the indefinite suspension of onion auctions. Khandu Deore, the president of the association, highlighted the decision's rationale. "If onions are brought to an APMC, auctions will proceed as usual. However, due to the time required to convey the decision to farmers, subsequent auctions will be put on hold indefinitely. This decision was taken in response to appeals from various farmer organizations," Deore explained.
Despite the closure, in some APMCs, auctions for the onions that were already available commenced as scheduled.
Sanjay Pingle, the president of the onion-potato market at the Vashi APMC in Navi Mumbai, appealed to the government to reconsider the imposition of the export duty. Pingle argued that the levy would unfairly burden onion growers in the state, potentially leading to a cascade effect on market prices and impacting farmers' earnings.
Pingle expressed the mounting pressure from farmers themselves, stating that multiple associations had urged them to cease onion sales. He outlined the scope of the protest, "Today, the entire Nashik district is observing an onion auction closure. In the following days, local markets are also likely to shut down. The APMC stands in solidarity with the farmers."
He went on to highlight the economic implications of the export duty, explaining that a 40 percent duty would substantially reduce the profits from onion exports. The prevailing market price of Rs 25 per kilogram could plummet to as low as Rs 15, forcing farmers to sell their produce at rates that barely cover production costs.
Pingle attributed miscommunication to the government's decision, suggesting that a certain agency provided an inaccurate report that disregarded the escalating costs associated with onion production, such as fertilizers and labor.
Rebuffing concerns about scarcity, Pingle noted that substantial onion stocks—80 percent in Maharashtra and 70 percent in Madhya Pradesh—remain available. He attributed this to favorable weather conditions leading to robust onion yields in Maharashtra and Karnataka.
Calling for equitable distribution, Pingle recommended that the government include onions in the public distribution system (PDS), paralleling the approach for rice and wheat. "To ensure affordable onion access for the economically disadvantaged, onion should be made available through the PDS at rates ranging from Rs 2 to Rs 10 per kilogram," he emphasized.
Pingle also warned of unintended consequences, asserting that the export duty would propel increased onion imports from countries like Pakistan, Iran, and Egypt, inadvertently impacting domestic farmers' income.
In a final plea, Pingle urged Union Minister Nitin Gadkari to intervene and mediate the issue with the central government. He assured that the trading community would stand by the farmers in the face of this challenge.
Pingle concluded with a call for transparency, demanding that the government convene a stakeholders' meeting before implementing the export duty, to ensure a comprehensive understanding of the implications and explore potential alternatives.
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