Onion traders announced on Wednesday the indefinite suspension of auctions in all Agricultural Produce Market Committees (APMCs) in Nashik district, Maharashtra. The move comes in protest against the Union government’s recent decision to hike the export duty on onions to 40 per cent, effective until December 31. This suspension raises concerns over a potential shortage of the essential kitchen item and an increase in retail prices.
Trade sources suggest an immediate price hike of Rs 2 per kilogram due to the abrupt disruption in supplies. However, the impact is expected to be mitigated as government agencies Nafed and NCCF are offloading their onion inventories.
An office-bearer of the Nashik District Onion Traders Association (NDOTA) stated that the Union government’s move would not only hamper onion exports but also affect onions in transit, thereby causing significant losses to farmers.
Abdul Sattar, Maharashtra’s marketing minister, criticised the suspension of auctions. “Secretaries in the departments of cooperation and marketing will discuss the action to be taken according to the rules, and the Nashik district collector will initiate the necessary measures,” he said.
Last month, traders alleged that the Central government had failed to keep its assurance of Nafed purchasing onions from farmers. They also claimed that farmers received less for their produce in auctions than the government-announced rate of Rs 2,410 per quintal.
The traders have presented additional demands, including the cancellation of the new export duty, a 50 per cent reduction in market fees, and involvement of Nafed and NCCF in the auctions, along with a 50 per cent transport subsidy.
First Published: Sep 20 2023 | 8:25 PM IST
