Nilanjan
Onion farmer’s of Maharashtra protested against the hike in export duty of onions by the Government of India. On August 20, 2023, farmers from at least three districts of Mahararsthra expressed their disapproval of the Indian Government’s recent decision.
On August 19, 2023, the Indian Government announced the imposition of 40% export duties on onions. In response, various farmers from Nashik, Pune, Ahmednagar district halted the process of auctioning onions.
Government’s objective behind 40% export duty
The recent decision by India to impose a 40% export duty on onions has sparked both interest and discussions in global trade circles. However, according to the GOI viewpoint, this is a major policy change in the right direction.
The Government of India has shed light on its potential impact on international markets and the domestic economy. The decision is made after citing concerns about rising onion prices in the country and the need to stabilize the local market.
As the average wholesale onion price has seen a hike of 20% from July to August, to 2,400 rupees per 100 kg, the government is keen to maintain the local prices minimal. Thus, the 40% export duty is imposed on onions. The export duty will make Indian onions more expensive than those from Pakistan, China, and Egypt. This will naturally lead to lower exports and aid in reducing local prices. Summer-harvested onions are decaying quickly, and new supplies are taking longer to arrive. The government has responded to this scenario by taking preventative measures.
India’s onion exports increased 63% year over year to 1.46 million metric tons in the first half of 2023. India’s supplies are crucial to nations like Bangladesh, Nepal, Malaysia, the United Arab Emirates, and Sri Lanka. Vegetable and grain prices jumped in July, pushing India’s annual retail inflation to its highest level in 15 months and increasing pressure on the government to act to lower prices.
Why are the Onion farmers protesting in Maharashtra?
The national government’s plan to increase the export duty on onions to 40% has sparked protests among farmers in Maharashtra who claim that the decision will result in their losses due to the high export charge and lower local market prices for onions. Farmers in Maharashtra were expecting good returns from onion exports, but the imposed duty has ensured that there will not be any export. The prices in the domestic market will crash and farmers will incur losses. The farmers through these protests are trying to convey the emotional and economic turmoil they are grappling with.
They have stopped holding auctions at all of Nashik’s market committees, with assistance from the farmers’ organizations. The Swabhimani Shetkari Sanghatana took to the streets and blocked the Shirdi-Surat Highway, calling for the government decision to be reversed. The Akhil Bharatiya Kisan Sabha (ABKS) urged the farmers to expand their agitation across the state by stopping auctions at all market committees in the state.
However, not all the protesting farmers are demanding to lift the export duty. Some are also seeking comprehensive government support to address their concerns. Some of them urged that the centre should also pay attention to their woes because the export duty has sent a message to traders that all the available onions are going to be sold in domestic markets only. Traders have now started quoting lower prices for our produce.
Maharashtra’s Agriculture Minister has called this move an injustice to farmers. He further talked of attending a meeting with the Union Commerce Minister and Union Agriculture Minister later this week to solve the issue.
This is not the only farmer outbreak in the state. Previously in March 2023, Maharashtrian farmers called a long march to Mumbai. The farmer’s concern was waiver of farm loans, Rs 600 per quintal of relief for onion. Follow for more updates about the ongoing onion farmers protest in Maharashtra.
