Onion Export Ban Controversy: Discrepancies in Government Statements Raise Concerns

Pune, 20th February 2024: On one hand, the Chief Minister, Revenue Minister, and Union Ministers assert that the export ban on onions has been lifted; on the other hand, no official notification to this effect has been issued by the Central Government. This has triggered angry reactions from onion-producing farmers, farmers’ organizations, and academics, who argue that this discrepancy may indicate a scam and fraud against onion-producing farmers.

Maharashtra Chief Minister Eknath Shinde, Minister of Revenue of Maharashtra Radhakrishna Vikhe-Patil, and Minister of State for Health and Family Welfare of India Dr Bharti Pawar claimed on Sunday that the Central Government has provided significant relief to onion farmers by lifting the restrictions on onion exports during the Ministerial Committee meeting chaired by Union Cooperation Minister Amit Shah. However, the Union Ministry of Commerce has not issued any official notification or provided information on this matter. Bharat Dighole, President of the Onion Producers’ Association, has questioned why the central government, which promptly issued notifications during the night and midnight, is now silent regarding the imposition of the export ban.

Following the export ban, the value of onions has plummeted, with sales failing to cover production costs. Allegations have been made that the central government is exacerbating the challenges faced by onion producers by maintaining the export ban at a time when relief is needed for the farmers. While farmers do not seek exorbitant prices like Rs 100-200 per kg for onions, they request a fair average price of Rs 30 per kg. Bharat Dighole has also emphasized the need for the government to provide guidance on which crops farmers should focus on in agriculture moving forward.

Lalit Bahale-Patil, the president of the Farmers’ Association founded by Sharad Joshi, expressed the view that intervening in onion exports is inappropriate and likened the export ban to financial treason. He pointed out that vegetables and fruits have been exempted from the Market Committee Act. Consequently, there is no requirement to approach the market committee to sell onions. Instead, Bahale-Patil suggested that both farmers and consumers should directly engage at the farmers’ locations for purchasing onions.

Nashik has borne the brunt of the export ban, as it accounted for 60% of the country’s onion exports, totalling 25.2 lakh tonnes valued at Rs 4,522 crore in 2022-23. A significant portion, one-third, of Nashik district’s total onion production is typically exported. The stagnation in exports has led to economic repercussions, causing market prices to surge. Despite ample domestic supply, the market price of onions hovered around Rs 1,000 to 1,200 per quintal from December 8, 2023, to the second week of February, following the imposition of the export ban.

This decision to ban exports appears misguided, considering the surplus in the country’s onion supply during the January-March quarter, attributed to delayed Kharif and East Rabi season sowings and higher per-hectare productivity. Interestingly, the ban on exports was enforced despite falling market prices, leading to financial losses for farmers. Deepak Chavan, an agriculture expert, emphasized the need for the Central Department of Agriculture to provide monthly objective reports on sowing and hectare productivity in a scientifically sound manner.