Onion traders in Nashik district have decided to indefinitely close onion auctions in protest against the Centre’s decision to impose a 40% duty on the export of the kitchen staple.
The decision was taken on Sunday in a meeting of the Nashik District Onion Traders Association. Traders said the duty will adversely affect onion growers and its export.
“If we pay 40% duty to the government, then the rate of the onion which we were exporting for Rs 25 (per kg) will drop down to Rs 15. At this rate, we will be forced to purchase onion at Rs 10, which will not even cover a farmer’s production cost,” said Sanjay Pingle, onion-potato market president at the Vashi APMC in neighbouring Navi Mumbai.
Pingle urged the Centre to rethink its decision and called for a meeting of stakeholders before implementing it. He also urged the government to provide onion through the public distribution system (PDS) to ensure that poor people get it at a cheaper rate.
The decision to close onion auctions has been supported by farmers’ organisations, who have been demanding that the government withdraw the duty.
“The Centre’s decision is a clear case of favouring traders over farmers. It will only benefit exporters in countries like Pakistan, Iran and Egypt,” said Khandu Deore, president of the Nashik District Onion Traders Association.
He said that the state government should also take steps to ensure that onion prices remain stable in the domestic market.
The Centre had imposed the 40% duty on onion exports on August 19, citing rising prices of the vegetable in the domestic market. However, traders and farmers have argued that the duty will only benefit a few exporters and will not have any impact on the prices in the domestic market.
The Nashik district is the largest producer of onions in India. The decision to close onion auctions is likely to have a significant impact on the market and could lead to further price hikes.
