Nashik: Farmers and onion exporters are urging the Narendra Modi-led government to abolish the export duty on onions as the country's onion production is set to rise by 57 per cent. They fear that with the increased supply, onion prices could drop significantly, negatively impacting farmers. This comes as the onion market braces for large quantities of onions entering the market in the next 30 to 35 days.
The Nashik district has received favourable rainfall, contributing to a surge in onion production. According to a recent report from the Centre, onion production is expected to increase by 57 per cent due to a larger cultivation area, with the total area under onion cultivation growing by 70,000 hectares to 5.35 lakh hectares. As a result, 106 lakh tonnes of onions are expected to be produced in the Rabi season.
Bharat Dighole, President of the Maharashtra State Onion Producers Association, expressed concerns over the lack of consistency in the government's export policy. "The government needs to formulate a policy to provide relief to onion-producing farmers. If the government removes export duties and provides subsidies for exports, it would benefit farmers," Dighiole said.
Exporters also echoed similar concerns, highlighting the competition posed by Pakistan, which captured markets in Singapore, Malaysia, and Vietnam after India imposed an export ban last year.
Vikas Singh, Vice President of the Onion Exporters Association, warned that large quantities of onions would enter the market in March, which could further reduce prices. Singh called for the export duty to be cancelled to ensure India's competitive edge in the global market.
"The state's total onion storage capacity is limited to 31 lakh tonnes," Singh added.
