Maharashtra's onion traders surrender licenses amid 40% Expo

Onion traders in Nashik district, Maharashtra, have ceased auctions in all Agriculture Produce Market Committees (APMCs) indefinitely. Their protest is in response to the recent decision by the Union government to increase export duty on onions by up to 40%, effective until December 31. This move has raised concerns about potential shortages of onions in retail markets and an accompanying surge in prices.

Protest and Its Implications

The Nashik District Onion Traders Association (NDOTA) spearheaded this protest as a reaction to the export duty hike. Traders argue that this decision not only hampers onion exports but also disrupts onions in transit, causing substantial losses to farmers. Despite efforts to find a resolution, including a deadline given to the government until September 19, the traders have chosen to indefinitely suspend onion auctions.

Demands

Among their demands, the traders are calling for the cancellation of the export duty on onions, a 50% reduction in market fees, participation by the National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) in auctions, and a 50% subsidy in onion transportation. Maharashtra's marketing minister, Abdul Sattar, expressed reservations about the protest, emphasizing the need for a more measured approach.

Government Response and Legal Action

In response to the protest, the District Sub-registrar, Co-operative Societies, issued an order directing APMCs to suspend or cancel the licenses of striking traders and submit an Action Taken Report by September 21. The order also stipulates that APMCs must make optional arrangements to continue the sale and purchase of agricultural produce and take action against traders who fail to comply.

While government officials plan to meet with the traders on September 26 to discuss the situation, the protest has already disrupted agricultural markets and raised concerns about the availability and cost of onions in the coming months.