Maharashtra: Centre steps in to wipe tears of onion farmers

Onion containers were stuck at ports waiting for the situation to be resolved. File Pic/Nimesh Dave

Caught between two major vote banks - farmers and domestic consumers - the Union government intervened to ensure relief to both on Tuesday. The Centre started buying onions from the producers who had been protesting a 40 per cent export duty on onions that are largely grown in Maharashtra from where they are supplied nationally and to the neighbouring Asian and gulf countries.

The Modi government had imposed a 40 per cent duty two days ago to discourage the export of onions and ensure affordable supply in the inflation-hit domestic market. The duty would be effective till December 2023. This enraged the market players, including traders, who had their containers docked at ports. The Opposition protested while the pro-government people lobbied for a relief for stakeholders.

While the tomato price hike was on its way to recovery, onions started posing trouble for the government ahead of the Assembly polls in some politically crucial states and Lok Sabha elections.

Scramble for a solution

Calling it a move that will cause losses to farmers, the auction trade was stopped at agricultural market committee yards in Nashik and elsewhere. As the issue escalated politically, the ruling leaders in Maharashtra scrambled to convince the Union government to come out with measures to satisfy both farmers and consumers. A sensitive issue like this has been a matter of concern for the parties in power. Some governments in the past too suffered a great deal when they failed to regulate prices, particularly of onions.

CM Eknath Shinde and Dy CM Ajit Pawar address a press conference at Sahyadri guest house on the onion issue on Tuesday. Pic/Ashish Raje

Deputy CM Devendra Fadnavis announced from Japan, where he is on an official visit, that following his calls to the Union Cooperation and Home Minister Amit Shah and Commerce Minister Piyush Goyal, the Centre had decided to buy two lakh metric tonnes of onion produce through its marketing arm NAFED at the rate of Rs 2,410 per quintal from Tuesday itself.

CM Eknath Shinde and Deputy CM Ajit Pawar held a joint press conference later in the day to announce the same, insisting that they too had a discussion with Shah and Goyal about resolving the crisis. Shinde thanked PM Modi for clearing the proposal just before leaving for a foreign tour.

"We have formally requested the Union government to reduce export duty on onion and further increase the price from Rs 2,410/quintal, which is the highest so far. We have taken a concrete step to facilitate scientific storage of at least 10 lakh tonnes of onion this rabbi season," said the CM, adding that the state government had assisted the farmers when onion prices had slumped.

He said the onion farmers were never given relief the way the Modi government had given on Tuesday. "Sharad Pawar was agriculture minister for 10 years. Did he offer any such relief during a similar crisis?" asked Shinde, requesting the Opposition to stop politics.

Opposition attacks

But the Opposition bloc continued to lash out. Congress said the purchase by NAFED was misleading. "Why don't they abolish export duty? The agitated farmers will throw the BJP out of power," said state president Nana Patole, adding that the Modi government was scared of farmers' ire.

‘Who's running the govt?'

Opposition leader in the Assembly, Vijay Wadettiwar alleged a game of one-upmanship between the ruling partners. "The CM takes a meeting and his deputy announces the decision from Japan? Who is running the government?" he asked.

He accused the BJP of ruining the onion market, which was offering farmers a good price. "The increase in export duty brought the price down to such an extent that the farmers could not even recover the cost of cultivation. As they realised the farmers ire, Fadnavis announced the decision from Japan even while the state's agriculture minister was discussing the issue with Piyush Goyal. And then the agriculture minister too made an announcement from Delhi. While the two (from BJP and NCP) went public, Shinde and Ajit Pawar were in a meeting in Mumbai," said Wadettiwar. When asked about allegations, Shinde and Pawar said in one voice that it was a collective effort of the three partners who did not compete for credit.