E-Paper
Farmers, traders link Centre’s decision to lift ban to polls
The Centre on Saturday lifted the ban on onion export but imposed a Minimum Export Price (MEP) of $550 per tonne to keep a check on outbound shipments
The Centre’s decision to lift the ban on onion exports has come less than weeks before Maharashtra’s onion belt goes to polls. While the onion growers and traders from Nashik, known to be India’s largest producer of the kitchen staple, welcomed the decision, they termed it ‘political’, to quell the unrest among the farmers ahead of polls.
The Centre on Saturday lifted the ban on onion export but imposed a Minimum Export Price (MEP) of $550 per tonne to keep a check on outbound shipments. Along with that, the Centre also put a 40 per cent additional duty on export prices, according to a notification issued by the Directorate General of Foreign Trade (DGFT).
Jaydutta Holkar, director at the country’s largest wholesale market Lasalgaon and Vashi Agricultural Produce Market Committees (APMC) said, “This is just a political decision as it will not help the farmers.”
According to Holkar, farmers may feel the situation has improved for a week although the 40 per cent additional duty on export price will be detrimental for their produce.
“The decision will neither help in prices of onion going up in domestic markets nor through the export. Government should have kept onion export free from conditions to help exporters and farmers by keeping prices competitive,” said Holkar.
Besides Nashik, other districts such as Ahmednagar, Pune, and Sambhajinagar are known to be onion-producing. The latest decision by the Centre may impact farmers from at least six Lok Sabha constituencies including Nashik, Dindori, Ahmednagar, Shirdi, Shirur, and Sambhajinagar.
Sandeep Deore, onion exporter from Satana APMC from Nashik district said, “This decision will help to change market sentiments but it will be only for a few days. However, this decision will help in changing the sentiments in the local market.”
According to Rupesh Sawant, a farmer from Nampur village in Nashik district, onion production has been less this year due to inadequate rains.
“Only areas along the waterbodies have ample onion production. As a result, domestic prices have already started increasing and have reached the range of ₹1,400 per tonne to ₹1,800 per tonne from ₹1000 per tonne a month ago,” said Sawant.
In retail markets of Mumbai and Pune, onion is being sold in the range between ₹20-25 per kg.
For the past few days, the opposition has been targeting the BJP over a ban on exporting the crop. The poll prospects of some of the candidates such as BJP candidates Bharati Pawar Dondori and Sujay Vikhe in Dindori and Ahmednagar; Shiv Sena’s Hemant Godse from Nashik; and Shivajirao Adhalrao of NCP in Shirur, were also linked to resentment among farmers, which according to BJP leaders, will now be subdued after the latest decision. Most of these constituencies go to polls in two phases between May 13 and 20.
Deputy Chief Minister Devendra Fadnavis while welcoming this decision said, “As Prime Minister Narendra Modi took the decision to withdraw the ban on onion export, it will ensure that the farmers in Maharashtra will get good prices and income.”
Sunil Ahire, a farmer from Deola village in Nashik district said, his only request to the government now is not to interfere with onion export.
“By announcing the onion export ban in December, the government brought down the prices just to offer feel good atmosphere to voters. Considering the polls, the government has now taken this decision but has imposed MEP as well as 40 per cent export duty,” said Ahire.
Satish Pawar, another farmer from Satana said, “There was anger among the farmers. We have been demanding for the last three months to lift the ban.”
Amol Kolhe, Sitting MP and NCP (SP) candidate from Shirur said, “The BJP government is playing with farmers without any fixed policy on export. I am doubtful if the latest decision will in any way help farmers as the government has kept duty on onion export.”
