With the imposition of 40 per cent onion export duty creating a rift within the BJP and upsetting farmers across the state, Deputy Chief Minister Devendra Fadnavis, currently in Japan on an official trip, has swiftly moved into action. He dialed Union Home Minister Amit Shah and Union Minister for Consumer Affairs, Food and Public Distribution Piyush Goyal, following which the Centre agreed to purchase two lakh metric tonnes onions from farmers.
Farmers in Maharashtra had forced closure of onion auctions in Nashik, Ahmednagar and Pune districts following the export duty announcement. They wanted the duty to be removed so they could benefit from higher export prices of onions.
Chief Minister Eknath Shinde's Shiv Sena had also expressed its displeasure at imposition of the duty. Dada Bhuse, a senior Shiv Sena minister and close aide of Shinde, firmly opposed the decision and said there was no need to impose the duty to control onion prices. “Those who can't afford to eat onions, shouldn't eat them for a few days. But let farmers get good prices and benefit from exports,” said Bhuse.
State Agriculture Minister Dhananjay Munde, a close aide of Ajit Pawar and recent entrant to the Maharashtra cabinet, also visited Delhi to meet Goyal to take up demands of the farmers.
The imposition of duty created rift in the BJP too. Union Minister Bharati Pawar who is an MP from onion-growing Nashik supported the export duty imposition while Subhash Bhamre, former Union Minister and a BJP MP from the neighbouring Dhule, firmly expressed his opposition. A few onion-growing talukas are part of Dhule Lok Sabha constituency.
Bhamre felt that the decision by the Centre was unjust and would adversely affect farmers. “Farmers had started getting adequate price just now after suffer unseasonal rains and other vagaries of nature. The government should immediately roll back its decision. I will meet Union Minster Goyal and explain the situation of farmers to him,” Bhamre reportedly said in an audio clip.
Last week, onion was being sold at over Rs 1,800-2,000 per quintal at Lasalgaon, the largest wholesale market for onions in India. Farmers were looking forward to export the bulb before the duties were imposed. Thus, angry farmers forced closure of Lasalgaon and Pimpalgaon Baswant markets on Monday. Rabi onion farmers had already suffered losses due to unseasonal rains in March and April.
As the Centre announced it decision to impose increased export duty, close to 4,000 tonnes of onions in 200 containers ready to be shipped has got stranded at JNPT port in Navi Mumbai as the customs and central excise department intervened. Onion being a highly perishable crop could soon start rotting in the containers, say onion exporters.
Eknath Shinde and Ajit Pawar address media during a press conference | Amey Mansabdar
Following this, Fadnavis dialed the Union ministers for help. He explained the situation in Maharashtra to both Shah and Goyal and obtained a promise from them that the Centre will purchase two lakh metric tonnes of onion at a rate of Rs 2,410 per quintal. Special onion purchase centres will be set up in Nashik, Ahmednagar and Pune districts for this purpose.
Addressing a hurriedly called media briefing on the issue, CM Shinde and Deputy CM Pawar hailed the Centre's decision to purchase onions as a historic decision. “We (Shinde, Pawar and Fadnavis) spoke to Prime Minister Modi ji, Home and Cooperation Minister Amit Shah ji and Piyush Goyal ji on the onion (export duty) issue. The PM assured us of all help before leaving for his South Africa tour. Accordingly, Amit Shah and Piyush Goyal told us that the Centre will procure onions through NAFED (National Agricultural Cooperative Marketing Federation of India). The home minister also said that they will procure more if the need arises and said that onions in the containers that were scheduled to be exported will also be purchased. This is a historic step to help farmers and we thank the central government,” said Shinde at the briefing.
