Onion trade is new battleground for political parties

On Tuesday, leaders in the state government as well as opposition indulged in a war of words soon after the Union government launched one of the biggest drives to buy onions directly from farmers at a record price, and justified the decision to levy a 40% duty on onion exports, as it tried to strike a balance between the interests of consumers and farmers

MUMBAI/ PUNE: The tumult among farmers and traders, following the central government’s order to levy 40% export duty on onions, has presented a battleground for political parties. On Tuesday, leaders in the state government as well as opposition indulged in a war of words soon after the Union government launched one of the biggest drives to buy onions directly from farmers at a record price, and justified the decision to levy a 40% duty on onion exports, as it tried to strike a balance between the interests of consumers and farmers.

At a press meet held on Tuesday, chief minister Eknath Shinde and deputy chief minister Ajit Pawar, Shinde thanked prime minister Narendra Modi over the “unprecedented decision” adding the NCP chief Sharad Pawar should not “play politics as he did not take any such decision during his tenure of 10 years as union agriculture minister” (Bachchan Kumar/ HT PHOTO)

The announcement by food, consumer affairs and commerce minister Piyush Goyal came after traders and farmers in the state protested the export duty. Goyal assured growers that their incomes would be protected, and that the government will buy onions (2 lakh metric tonnes) directly from growers at a “historic” price of ₹2,410 per quintal. “There is no need for farmers to resort to any panic selling,” Goyal told reporters in Delhi.

While on the one hand, farmers in Nashik and Ahmednagar are resolute about continuing their agitation and rejected the government’s latest move, calling it “a drop in the ocean” given the amount of stocks held by farmers and traders, ruling parties in Maharashtra wasted little opportunity to claim credit over the announcement of the procurement.

Even before state agriculture minister and Ajit Pawar-led NCP leader Dhananjay Munde reached Delhi to discuss the matter with Goyal, deputy chief minister and BJP leader Devendra Fadnavis announced the government’s decision on X. Fadnavis, who is in Japan, spoke with union home minister Amit Shah and Goyal before stating that the government’s latest move “will give a great respite to onion growers in the state”.

Fadnavis made the announcement in the morning when Munde was in a meeting with Goyal. A part of the ruling faction in the state government has requested the Centre to roll back the 40% export duty imposed by the ministry of commerce.

At a press meet held on Tuesday, chief minister Eknath Shinde and deputy chief minister Ajit Pawar, Shinde thanked prime minister Narendra Modi over the “unprecedented decision” adding the NCP chief Sharad Pawar should not “play politics as he did not take any such decision during his tenure of 10 years as union agriculture minister”. Ajit Pawar, on the other hand, said “the central government was safeguarding the interest of the farmers, traders and the common man with this decision” and added, “more stock of the onion will be procured, if need be. We have also requested the central government to remove the export duty imposed on onion.”

Maharashtra accounts for up to 35% of onion exports from India. The agitation intensified on Monday with farmers’ outfits as well as opposition parties such as the Sharad Pawar faction of NCP backing the farmers.

Supporting their demand, the NCP chief said farmers will not be unable to recover their input cost with ₹2,410 per quintal announced by the central government. “The export duty should be scrapped with immediate effect and farmers given ₹4,000 per quintal against onion procurement by National Agricultural Cooperative Marketing Federation of India (NAFED),” Pawar said.

The faction’s MP Amol Kolhe, who has led the agitation over the last two days, held a protest at Alephata Chowk, in Pune and blocked the Pune-Nashik Highway on Tuesday. He alleged that the central government was misguiding the farmers by buying 2 lakh metric tonnes of onions. “When farmers were selling onions at ₹300- ₹400 per quintal for three years, the government was sleeping. Now, when the agrarian community was about to recover the losses, export duty was imposed by the government,” Kolhe charged. “This means, exporters will not be able to sell onions in the international market. It also means farmers from Pakistan, Bangladesh, Egypt and Iran will benefit from the decision and Indian farmers will be at the receiving end.”

State Congress president Nana Patole added, “The BJP-led government is weakening the financial health of farmers. In the past too, the prime minister insulted farmers calling them terrorists, naxalites and Khalistanis, when they were protesting the controversial three farm laws.”

Markets closed on Day-2

Ajit Nawale, national joint secretary, All India Kisan Sabha, said, “The government will procure just 2 lakh metric tonnes of 40 lakh metric tonnes lying with farmers. Until the export duty is removed, we will continue our agitation. The quantum of the exported onion is small but it badly affects market sentiments, allowing room for traders to exploit farmers.”

Khandu Patil Devare, president, Nashik District Traders Association said that the decision about the protest will be taken on Wednesday. “No farmer or the trader is expected to get benefit out of the announcement made by the central government. NAFED does no procure onion from the farmers.”

Traders at the Navi Mumbai APMC termed the move as anti-farmer. APMC director Ashok Walunj said, “Piyush Goyal and Dhananjay Munde are trying to dupe everyone. What difference will 2 lakh metric tonnes make when there is a big stock available? This offer has been made only for them to look good to the public.”

Bharat Dighole, president of the Maharashtra State Onion Growers’ Association said, “Although the state government-recognised federations have started purchasing onions at rate of ₹2410 per quintal, we are firm on our demand and will continue to protest against the 40 per cent export duty.”

On the second day of protest, the APMC at Lasalgaon remained closed, although around 100 trucks of onion arrived at Vinchur APMC, a sub-market Lasalgaon APMC, in the morning.

The Nashik district collector Jalaj Sharma held a meeting with Onion Traders Association to find a way out of this deadlock, on Tuesday. Sharma said, “We have requested them to start the markets and purchasing onions from farmers. We wanted to understand their demands. Another round of meeting will be held on Wednesday, in the presence of union minister Bharati Pawar. Hopefully, we will arrive at a solution.”

Speaking on behalf of farmers, Balasaheb Darade, chairman of traders’ association at Lasalgaon APMC, said: “At the meeting with the collector, we pointed out how thousands of quintals of onion are currently stuck at Mumbai and Chennai ports and the Bangladesh and Nepal borders. So we need to find an immediate solution as onions are perishable goods.”