Raising concerns about the potential scarcity of onions and a subsequent price hike in retail markets, onion traders in Maharashtra’s Nashik district announced the suspension of auctions in all Agriculture Produce Market Committees (APMCs) indefinitely. Traders said the reason behind the protest was the recent decision by the Union government to increase export duty on the kitchen staple by up to 40%, a measure set to remain in effect till December 31. The strike is likely to impact the onion prices across the country.
Speaking to The Hindu, Khandu Kaka Deore, president, Nashik District Onion Traders Association (NDOTA), said that around 25 APMCs in the district decided to go on strike protesting this export duty hike, which, they believe, would not only hinder onion exports but also impact onions in transit, causing significant losses to farmers
“Due to the protest, auctions of bulbs did not take place in any APMCs in Nashik district today [on Wednesday], including at Lasalgaon, with no onions arriving at the APMCs,” he said. The Lasalgaon APMC is the largest wholesale onion market in Asia.
Appeal to Shinde
On September 13, the office-bearers of NDOTA met Maharashtra Chief Minister Eknath Shinde and Marketing Minister Abdul Sattar and gave a representation to intervene and resolve the issue, he said. “We met both of them and gave a representation in Mumbai. They called for a meeting on September 26,” Mr. Deore said.
The market was opened on Monday and a total of 18,072 quintals of onions were auctioned at the Lasalgaon APMC at an average rate of ₹2,051 per quintal, At present, only summer onions are available in the market. The APMCs remained closed on Tuesday on account of Ganesh Chaturthi.
Traders are demanding the cancellation of export duty on onions, a 50% reduction in market fees, involvement of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF) in auctions, and a 50% subsidy in onion transportation costs.
Mr. Sattar expressed reservations about the auction shutdown, suggesting that discussions would be held in the Departments of Cooperation and Marketing, and the Nashik District Collector would take the necessary action as per rules.
Earlier, the onion traders alleged that the government did not fulfill its assurance that the NAFED would purchase onions from farmers, leading to lower prices in auctions than the government’s announced rate of ₹2,410 per quintal. “NAFED is selling onions in the open market at a meagre price when compared to retail traders, which is causing huge loss to us,” a retail trader from Pimpalgoan said.
