Cong, NCP in Maharashtra ask Centre to lift onion export ban

The Maharashtra units of both major partners in the ruling coaltion, the Congress and the Nationalist Congress Party, have asked the central government to immediately lift the sudden ban on onion exports.

They say the indefinite protest shutdown of the wholesale market in Nashik district may have a socio-economic backlash which may get out of hand.

The NCP says growers who’d stored onions for the past four-odd months may commit suicide, fearing a major loss due to the ban.

Both parties also say the export ban may severely affect cultivation, because if farmers do not get a remunerative price, they would switch to other crops. Which would mean more escalation in onion prices.

Chief minister Prithviraj Chavan held a series of talks with the party's ministers during his visit to the capital after attending the National Integrity Council meeting. Manikrao Thakre, state party chief, told Business Standard "We appeal to the central government to immediately withdraw the ban. Movement in onion prices is cyclical and if farmers benefit during such occasions due to exports, then banning these may adversely affect the farmers. The party is of the view that government will have to restart onion exports, in the larger interest of onion growers."

A Congress leader, who did not want to be identified, said if the ban continued, it may mean a serious law and order problem in Nashik district in particular and the rest of the state, too.

Samir Bhujbal, NCP MP from Nashik, in a letter to party chief and Union agriculture minister Sharad Pawar, has termed the Centre's move "unexpected and hasty" and argued it was unwarranted. "This uncalled step will have utmost adverse effects on the onion grower farming community of Nashik district in particular, and will have a cascading effect at all levels through the country,” he said.

He said procurement prices had gone up to Rs 900-1,100 per quintal, almost at par with last year’s market rate. Immediately after the decision on exports, the procurement rates had fallen to Rs 500 per quintal.

Maharashtra produces 60-70 per cent of the country’s onions and Nashik district alone contributes 60 per cent of state output. The production was 4.9 million tonnes on 410,000 hectares in the state during 2010-11. In 2011-12, the central government estimates Maharashtra should produce 5.8 mt of onions, on 380,000 ha.

The Lasalgaon agriculture produce market committee, situated in Nashik district, is the largest onion market in Asia.