Centre gives assurance as Asia’s largest onion market shut for second day

The centre on Tuesday offered assurances to farmers and traders protesting the decision to impose a 40 per cent export duty on onions – a move it believes will check increase in prices of the kitchen staple in domestic markets – and said it had begun purchasing unsold stocks at the ‘historic’ price of ₹ 2,410 per quintal. The centre plans to procure around two lakh tonnes extra – around three lakh tonnes have already been purchased – in buffer stocks.

At a media briefing today, union commerce minister Piyush Goyal confirmed procurement had started and slammed ‘political opponents’ for ‘trying to present a wrong picture (about export curbs)’. “I would urge all farmers in onion producing states not to indulge in any panic selling,” Goyal said, “NCCF (National Cooperative Consumers’ Federation) and NAFED (National Agricultural Cooperative Marketing Federation of India) have been directed to procure onions…” he said.

Maharashtra agriculture minister Dhananjay Munde told the decision to procure onions was made after deputy chief ministers Ajit Pawar and Devendra Fadnavis and he spoke to Goyal.

“The farmers were worried about the 40 per cent duty imposed on the export of onions (they felt) that it would lead to onion prices falling in the (domestic) market. Keeping in view their sentiment and their need, he (Goyal) took a historic decision – wherever farmers grow onions in the country… last year, NCCF and NAFED bought onions at ₹ 1,200 per quintal.”

The assurances come after two days of protests in Nashik in Maharashtra, where onion auctions were closed indefinitely, at all APMCs (Agriculture Produce Market Committees), including at Lasalgaon – the largest wholesale onion market in India.

Sources told news agency PTI a furious onion traders’ association in Nashik said it will not take part in auctions of the vegetable till the union government rolled back the 40 per cent export duty.

Farmers say bad weather has impacted half their produce and hit out at the government for failing to act when they face catastrophic losses. “We didn’t get any assistance from the government last time. Around ₹ 20 have been spent per kilo by farmers… they demand ₹ 40 per kg rate. Not every farmer is able to sell the produce via NAFED,”

The 40 per cent export duty on onions – effective till December 31 and meant to restrict outward shipments and boost local availability of the vegetable – was announced last week. It was also decided to increase buffer stocks from three lakh tonnes to five lakh tonnes for the 2023-24 season.

Rabi onion harvested during April-June accounts for 65 per cent of India’s onion production and meets the consumer’s demand till the kharif crop is harvested in October-November.

After tomatoes, onions sold at subsidised prices

On Monday NCCF outlets began retail sale of onions at subsidised prices of ₹ 25 per kg in the national capital. The NCCF is already selling tomatoes at subsidised rates. The government has also identified Andhra Pradesh, Telangana, Himachal Pradesh and Assam for market intervention and availability is being enhanced in these states by releasing buffer stocks.
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