Good news for farmers: India set to lift ban on onion exports but may cap shipments at 3 lakh tonnes.
The Centre has decided to withdraw the ban on onion exports but will cap the shipments. However, farmers argue that the move will benefit the traders more due to the decision.
Bharti Pawar, Union Minister of State and MP from Nashik, announced the Centre’s decision to withdraw the ban on onion exports.
Pawar, who represents Dindori (Nashik rural constituency) told local media that while the ban is being lifted, the terms and conditions, including the extent of the cap, will be clarified in the impending government notification. According to sources, the government will allow the export of onion up to 3 lakh tonnes.
Leader of the ruling BJP, Shiv Sena, Nationalist Congress Party (NCP) government in Maharashtra welcomed the move saying the Union government’s group of ministers (GoM), led by Home Minister Amit Shah, has decided to withdraw the ban on onion exports. According to these leaders the decision, made during a meeting on Sunday, is expected to be formalised in a detailed notification within a couple of days.
The ban on onion exports was imposed on December 7, 2023. It was set to remain in effect until March 31, in an effort to address the demand for onions in the domestic markets and stabilise wholesale prices.
Traders stock up
Onion farmers in Nashik have expressed their concerns over the lifting of the ban, stating that the majority of farmers have already sold their produce to traders at low prices. They believe that the decision to lift the ban will primarily benefit traders who have stocked onions.
The State Onion Growers Association has criticised the government for its handling of the situation. It has questioned the logic behind imposing and then lifting the ban. Farmers have described the decision as illogical and claim that it has had a severe impact on their livelihoods.
Bharat Dighole, President of the Association, said over 90 per cent of the red onion crop has already been sold. He emphasised that if the government intends to lift the export ban to benefit farmers, it should do so without imposing any terms and conditions on the exports.
Traders’ demand
Onion traders in Nashik have expressed uncertainty about the government’s decision to lift the ban on onion exports, as they are still awaiting an official notification. Many traders have said they are not yet aware of the specifics of the decision.
Traders have raised concerns about the export process, demanding that the government lift the ban for all traders and not just allow government-to-government exports. They argue that this would allow for greater flexibility and benefit a wider range of traders in the market.