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This is an archive article published on August 22, 2023

NAFED to procure 2 lakh metric tonnes of onion at Rs 2,410 per quintal after protests against export duty

The decision comes following massive unrest among onion cultivators in Maharashtra after the Centre imposed a 40% export duty on onions to check the rise in prices.

onion export, excise duty on onion export, Maharashtra gocvt, roll back excise duty, Raju Shetti, Swabhimani Shetkari Sanghatana, indian express newsOn Monday, Nashik District Traders' Union decided to close the onion auction indefinitely in all  the APMCs. Lasalgaon in Nashik district is the biggest onion wholesale market. (Representational Image)
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NAFED to procure 2 lakh metric tonnes of onion at Rs 2,410 per quintal after protests against export duty
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The Centre has decided to procure 2 lakh metric tonnes of onions from farmers in Maharashtra at the rate of Rs 2,410 per quintal through the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), state Agriculture Minister Dhananjay Munde has said. Centres will be set up in Nashik and Ahmednagar districts to ensure smooth procurement.

The decision was necessitated following massive unrest among onion cultivators in the state after the Union government imposed a 40 per cent export duty on onions. The Centre’s decision was meant to check the rise in onion prices which had recently seen a sharp rise from Rs 30-35 per kg to Rs 45-60 per kg.

Following the government’s move, the Nashik Onion Traders Association Sunday decided to indefinitely shut the auction of onions at all Agricultural Produce Market Committees (APMC). Several farmers’ organisations also took to the streets in protest in Nashik and Ahmednagar districts.

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Meanwhile, Deputy Chief Minister Devendra Fadnavis, who is in Japan on an official tour, held telephonic talks with Union Home Minister Amit Shah and Union Commerce Minister Piyush Goyal. He apprised them about the unrest among farmers and sought the Centre’s intervention to provide them relief.

The state government also conveyed to the Centre that antagonising farmers in Maharashtra – Lasalgaon market in Nashik is the country’s biggest onion market – would prove detrimental.

Munde also spoke to farmers’ delegations and assured help before meeting Union minister Goyal in Delhi. After a series of deliberations, the Centre gave the nod to purchase onions from farmers in the state through NAFED. The move will help farmers as they can sell the huge stock at good rates.

On Monday, farmers had collectively voiced their apprehensions over the export duty. Raju Shetti, president of the Swabhimani Shetkari Sanghatana which participated in the protest, said, “The Centre’s decision to impose 40 per cent duty on onion export was detrimental to onion growers as it would trigger a crash in prices.” Farmers would not be able to recover the money they invested, he feared. Shetti had urged the Centre to roll back the duty.

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Opposition leaders in the state had also attacked the Centre for the high export duty. Maharashtra Congress president Nana Patole said, “The BJP has always overlooked farmers’ issues. For them, winning the election is the only criterion. The decision to impose 40 per cent duty on onion exports till December has been taken ahead of the Assembly elections in several states.”

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