Maharashtra onion farmers rue 20% export duty, ask govt to withdraw amid price slide

On December 20 last year, Deputy Chief Minister Ajit Pawar supported the demand for the removal of the duty.

Bharat Dighole, President, MSOGA, said they would escalate their agitation if their demand was not met. He complained that wholesale prices of onions have slid since the arrival of the new crop. “In case the government fails to remove the duty, we will be forced to suspend trade in all onion markets in the state,” he added.

At the Lasalgaon market, which is the largest onion market in the country, prices have slipped from a high of Rs 2,400/quintal on January 4 to Rs 1,900/quintal on January 10. Traders said prices are expected to slide further on the back of fresh arrivals.

“At present Kharif and late-Kharif crops have been harvested. Arrivals have improved and will continue to do so in the days to come. If the excess produce is not exported, prices would go down further,” said a trader at the Dindori wholesale market.

Ajit Shah, President, Onion Exporters Association, said, “At present, demand for Indian onions is good and FOB (Free On Board) prices are also conducive for trade. If the export duty is removed, the volume of export would increase.”

India banned the export of onion for the better half of 2023-24 because of production shortfall and the possibility of a domestic price rise.

During the Lok Sabha elections of 2024, the BJP-led alliance had fared poorly in the onion belt, forcing the Centre to relax the export norms a bit. However, the export duty on onions was not removed.

The Middle East, Sri Lanka, and Bangladesh are the traditional markets for Indian onions. Other than India, produce from Pakistan, and Turkey are also available in the international market.