In Nashik, Govt’s onion move finds mixed reactions

The fact however, is that since 1998, when the then BJP-led government had included the commodity in the list of essential commodities, the ceiling quantity for storing onions was not specified. Besides, in all these years, not a single godown was raided for storing over a stipulated amount.

Agriculture Minister Sharad Pawar however took time out from his political chores today to make the announcement, in what is being seen as an attempt to reach out to his constituency of farmers and traders in Maharashtra. The state produces nearly 30 per cent of the national output of onion crop.

Welcoming the announcement, onion cultivator, exporter and vice-chairman of NAFED Changdeorao Holkar said this would free the trade from restrictions. ‘‘In 1998, when prices of onions skyrocketed and the BJP lost the elections in four states, the party unnecessarily banned exports and included onions in the list of essential commodities,’’ he said, ‘‘All these years, the sword of the Act was dangling over onion trading. The inclusion of onion in list had hampered trading, as traders were scared that the government could issue a notification anytime and make a seizure.’’

‘‘The government, which could not declare a support price for onions, had no business to impose restrictions on either trading or storing of the commodity,’’ he added.

An official involved in the export of onions, however, said the announcement was purely political and would not have any immediate impact on onion prices. ‘‘Even when the Central government had included onion in the essential commodities list, people were storing it without any limit as the government had not specified the maximum limit,’’ he said.

Onion production in the country is to the tune of 54 lakh tonnes (with Maharashtra producing about 15 lakh tonnes). About five lakh tonnes are exported annually, mainly to the Gulf and third world countries.