Express News Service
MUMBAI: Kitchen staple onion has again ratcheted up tensions in Asia’s largest onion market Lasalgaon and other parts of Nasik in Maharashtra where traders have stopped buying the vegetable citing a 40% export duty imposed by the Centre.
Farmers have also refused to allow National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to sell their buffer stock of onions anywhere in the country till average wholesale onion prices reach Rs 6,000 per quintal.
The farmers argue that the heavy export duty is unjustified as the average wholesale prices currently stand around Rs 2,400 per quintal.
The ongoing strike by traders has already affected onion auctions worth Rs 125 crore, reports said. The Central move is aimed at discouraging exports and enhancing the supply within the domestic market, addressing inflation concerns.
With prices in the domestic market picking up, the Finance Ministry in August-end decided to impose the export duty with immediate effect.
Maharashtra Deputy Chief Minister Ajit Pawar told a meeting of traders on Monday that he would take up the issue with the Centre. Pawar said apart from the export duty cut, the traders asked to halve the Agricultural Produce Market Committee – APM C’s fee from Rs 1 for 100 quintals.
“We cannot take such decisions arbitrarily. I was told if we reduce the local market fee paid by traders, then the local APMC will be deprived of revenue. Besides, we have to decide for the entire state, not for any individual market committee,” said the deputy CM.
Traders and farmers are upset with the Central government for imposing a 40% duty on export of onions.
The Central move has led to a crash in onion prices in Maharashtra. However, the Central government earlier decided to buy the onion from the farmers at Rs 2,410 per quintal through government agencies such as NAFED, but the buying was only up to September 10.
NCP chief Sharad Pawar said there was ample stock of onions available. “There is no point in putting a 40% duty on onion export. If onion farmers are unable to earn some money, cotton farmers too will be deprived of good rates,” he said. “I urge the Central government to lift the export duty and allow export so that farmers from the domestic market get good rates,” Pawar said.
The Akhil Bharatiya Kisan Sabha, a farmers’ outfit, has asked farmers to extend their agitation across the state by shutting down auctions across markets.
The Swabhimani Shetkari Sanghatana (SSS) has protested several times and blocked the Shirdi-Surat highway, demanding a rollback. NCP chief Sharad Pawar has met SSS activists and promised them that he will highlight the issue.
The government said in August that besides imposing the 40% duty, it will also be offloading its onion stocks in various wholesale markets to reduce retail prices. As per the Department of Consumer Affairs’ Price Monitoring Division, on August 25, the (all-India) daily average retail price of onions was 25% higher on a year-on-year basis, at Rs 32.6/kg.
MUMBAI: Kitchen staple onion has again ratcheted up tensions in Asia’s largest onion market Lasalgaon and other parts of Nasik in Maharashtra where traders have stopped buying the vegetable citing a 40% export duty imposed by the Centre.
Farmers have also refused to allow National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to sell their buffer stock of onions anywhere in the country till average wholesale onion prices reach Rs 6,000 per quintal.
The farmers argue that the heavy export duty is unjustified as the average wholesale prices currently stand around Rs 2,400 per quintal.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
The ongoing strike by traders has already affected onion auctions worth Rs 125 crore, reports said. The Central move is aimed at discouraging exports and enhancing the supply within the domestic market, addressing inflation concerns.
With prices in the domestic market picking up, the Finance Ministry in August-end decided to impose the export duty with immediate effect.
Maharashtra Deputy Chief Minister Ajit Pawar told a meeting of traders on Monday that he would take up the issue with the Centre. Pawar said apart from the export duty cut, the traders asked to halve the Agricultural Produce Market Committee – APM C’s fee from Rs 1 for 100 quintals.
“We cannot take such decisions arbitrarily. I was told if we reduce the local market fee paid by traders, then the local APMC will be deprived of revenue. Besides, we have to decide for the entire state, not for any individual market committee,” said the deputy CM.
Traders and farmers are upset with the Central government for imposing a 40% duty on export of onions.
The Central move has led to a crash in onion prices in Maharashtra. However, the Central government earlier decided to buy the onion from the farmers at Rs 2,410 per quintal through government agencies such as NAFED, but the buying was only up to September 10.
NCP chief Sharad Pawar said there was ample stock of onions available. “There is no point in putting a 40% duty on onion export. If onion farmers are unable to earn some money, cotton farmers too will be deprived of good rates,” he said. “I urge the Central government to lift the export duty and allow export so that farmers from the domestic market get good rates,” Pawar said.
The Akhil Bharatiya Kisan Sabha, a farmers’ outfit, has asked farmers to extend their agitation across the state by shutting down auctions across markets.
The Swabhimani Shetkari Sanghatana (SSS) has protested several times and blocked the Shirdi-Surat highway, demanding a rollback. NCP chief Sharad Pawar has met SSS activists and promised them that he will highlight the issue.
The government said in August that besides imposing the 40% duty, it will also be offloading its onion stocks in various wholesale markets to reduce retail prices. As per the Department of Consumer Affairs’ Price Monitoring Division, on August 25, the (all-India) daily average retail price of onions was 25% higher on a year-on-year basis, at Rs 32.6/kg.
