The central government of India has stopped the exportation of onions until March 2024 to stop the increase in the price of onions. This decision has been taken so that onion prices can be brought under control in different parts of the country. People are already in teary-eyed phrases with onions in Delhi.

The price of onion there is already hovering between 70 and 80 rupees. It is also known that onions will be sold in the wholesale market at Tk 25 per kg. Incidentally, India exported 9.75 lakh tonnes of onion from April to August. From here onions are exported to Bangladesh, Malaysia and Arabia. Therefore, it is thought that onion exports to these countries will decrease.

Governmental steps to control Onions price

The central government has taken a big step to control the price of onions. Earlier, Directorate General of Foreign Trade (DGFT) had decided to increase the sale of buffer onion stock at a subsidized rate of Rs 25 per kg in the retail market to provide relief to consumers in October.

The government has taken several steps to control onion prices. A Minimum Export Price (MEP) of USD 800 per tonne was imposed on onion exports from October 28 to December 31 this year.

The country imposed a 40 percent export duty on onions from August until December 31. The DGFT also said that the export of onions will be allowed on the basis of their request if the government gives permission to other countries. Onion consignments, whose loading began before this notification, have been cleared for export by the Directorate General of Foreign Trade.

Farmer protest regarding the Decision

Onion Farmers started protesting against this decision of the Centre. According to an official source, Farmers stopped auctions at onion market of Lasalgaon, Chandwad, Nandgaon, Dindori, Deolali and other places in Nashik district on Friday after the Centre announced a ban on the export of the kitchen staple.

Onion farmers blocked the Mumbai-Agra highway at three places in Maharashtra’s Nashik and stopped auctions at wholesale markets in the district.

In Malegaon’s Jaikheda, Chandwad, Umarane, Nandgaon, and Mungase, farmers employed tractors for the ‘Rasta Rokos’ movement. A police official said the protesters dispersed peacefully after the announcement.

Different officials, Different views

Where the shipping bill has been submitted and the vessels have already anchored at the Indian port to load onions and have been assigned rotation numbers prior to this notification, the consignment is said to be cleared for export.

The DGFT also said that the export of onions will be allowed to other countries, subject to the permission given by the government.

It has been said that export of onions is being allowed even if consignments of onions are handed over to customs and registered in the system before this day’s notification. The period of exportation of such consignments shall be till 5th January next year.

Inflation of vegetables and potatoes stood at (-) 21.04 percent and (-) 29.27 percent respectively, while onion inflation rose to 62.60 percent.

Lasalgaon APMC Chairperson Balasaheb Khirsagar said to PTI, “The Centre’s decision is not in favor of farmers. Onion prices have not increased much in the last five-six days and have gone down. This decision will cause losses to farmers, and we demand withdrawal.”

Currently, the price is ₹1,000 to ₹1,200 per quintal, though people are selling it at ₹3,000 per quintal.

He added that there should be no middleman between producers and buyers, and the government should decide to sell onions directly.

Kiran Darade, an agitating farmer in Yeola, alleged that the central government imposed an export ban without any notification or complaint. Farmers are facing losses due to untimely rains and hailstorms. Maize and onion crops were damaged. The ban should be lifted as soon as possible.