Maharashtra Deputy Chief Minister Devendra Fadnavis on Tuesday said the Centre has decided to purchase two lakh metric tonnes of onion at the rate of Rs 2,410 per quintal, and expressed hope this will provide relief to producers of the key kitchen staple in the state
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Maharashtra Deputy Chief Minister Devendra Fadnavis on Tuesday said the Centre has decided to purchase two lakh metric tonnes of onion at the rate of Rs 2,410 per quintal, and expressed hope this will provide relief to producers of the key kitchen staple in the state.
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He also said special procurement centres will be set up in Nashik and Ahmednagar in the state.
The announcement comes amid protests by farmers and traders against the Centre's decision to impose 40 per cent export duty on onions to check price rise and improve supplies in the domestic market.
The Finance Ministry through a notification on August 19 imposed the 40 per cent export duty on onions till December 31, 2023.
Fadnavis, who is currently on a visit to Japan, in a post on X said, “I spoke to Union Home Minister Amit Shah and Union Commerce Minister Piyush Goyal regarding the onion issue. The Union government would procure two lakh metric tonnes of onion at the rate of Rs 2,410 per quintal.”
“There will be special procurement centres set up in Nashik and Ahmednagar districts for the same. It would offer some relief to the onion growers in the state,” the deputy CM added.
On Monday, traders in Nashik decided to indefinitely close onion auctions in all Agriculture Produce Market Committees (APMCs) in the district as a protest against the central government's decision to impose a 40 per cent duty on onion exports.
Most APMCs in the district, including Lasalgaon, India's largest wholesale onion market, remained closed on Monday in response to this decision.
The traders argue that this export duty, in effect until December 31, 2023, will have a detrimental impact on onion growers and the export of the staple.
The decision to indefinitely halt onion auctions was made during a meeting of the Nashik District Onion Traders Association on Sunday, according to Khandu Deore, the association's president.
Deore stated, "If onions are brought to an APMC, and the decision takes time to reach farmers, then the auction of those onions will be conducted, and the process will then remain closed indefinitely."
Sanjay Pingle, president of the onion-potato market at the Vashi APMC in Navi Mumbai, urged the central government to reconsider the 40 per cent export duty on onions. He claimed this decision would significantly harm onion growers in the state.
Pingle said, "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 auctions) today. In the coming days, local markets will also close. The APMC has also decided to support the farmers."
He argued that if they pay a 40 per cent duty to the government, the price of exported onions, previously sold at Rs 25 per kilogram, would drop to Rs 15. Such prices would force them to purchase onions at Rs 10, a rate that wouldn't even cover a farmer's production cost.
Pingle also claimed that some agency had provided a "misleading report" to the central government on this issue, failing to consider the increased costs of fertilizers, labor, and other factors in onion production.
He suggested that the government should provide onions through the public distribution system (PDS), similar to what is done for rice and wheat. This, he believed, would ensure that onions are available to the poor at a lower cost.
Pingle further argued that the government's decision would significantly reduce onion exports, benefiting farmers in Pakistan, Iran, and Egypt.
He called on Union Minister Nitin Gadkari to address this issue with the central government and urged the government to convene a stakeholder meeting before implementing the export duty. (Agencies)
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