Onion Export Duty: No Farmer Will Get Low Price, Says Agriculture Minister After Protests In Maharashtra

Farmers and traders in APMCs in Nashik, Lasalgaon, and some other regions in Maharashtra have halted onion auctions amidst demands for a rollback of the export duty.

Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar on Saturday said the onion farmers do not need to worry as it is guaranteed that no farmer will get low prices because special arrangements have been made for it. The comment came after onion farmers in Maharashtra started a protest against the Centre imposing a 40 per cent export duty on onions. 

The 40 per cent export duty on onions was introduced by the government on August 19, citing the need to keep a check on domestic availability and market prices. The export duty will be in force till December 31. Following this farmers and traders in Agriculture Produce Market Committees (APMCs) in Nashik, Lasalgaon, and some other regions in Maharashtra have halted onion auctions amidst demands for a rollback of the export duty.

Today in Gwalior, Madhya Pradesh, Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar told ANI, "No farmer needs to worry on the onion issue. Keeping the future conditions in mind, the central government has made a decision, but there is also a guarantee that no farmer gets low prices, special arrangements have been made for it. NAFED is buying the onions. It is providing good rates to the farmers."

On Tuesday, Union Minister Piyush Goyal reassuranced farmers saying that the government would start the procurement of an additional 2 lakh tonnes of onions for the buffer stock. This initiative aims to support onion farmers across regions such as Maharashtra, Madhya Pradesh, Gujarat, and others. Goyal assured farmers that they would receive appropriate compensation for their produce, with the government procuring the onions at a rate of Rs 2,410 per quintal.

Goyal said NCCF and NAFED will initiate the purchase of an additional 2 lakh tons of onions from various areas including Nashik, Pimpalgaon, Lasalgaon, Ahmednagar, and the entire region. He underscored that farmers need not be concerned about the export duty. 

As per reports, Onion prices were anticipated to rise in the retail market by the end of August, with a further increase expected to reach around Rs 60-70 per kg next month. A Crisil Market Intelligence and Analytics report has said that the supply-demand imbalance is likely to impact onion prices towards the end of August. However, these rates are predicted to remain below the levels recorded in 2020.