The Centre's move to ban onion exports seems to have misfired with farmers in Maharashtra refusing to sell the vegetable for over a week now. The ban, imposed on September 7 to check surging prices, has led to rates rising more than what they were before the ban.

At the Pune Agricultural Produce Marketing Committee (APMC) yard in Maharashtra, the modal price or the rate at which most trades took place was Rs 1,025 a quintal on September 6. However, on Friday the modal rate was Rs 1,250, up from Rs 825 on September 7..

“Most markets in Maharashtra are closed indefinitely as farmers are refusing to sell. Apart from the Pune APMC yard, a few in Nashik and Ahmednagar districts open but for a limited time,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.

“Domestic demand is constant. Stocks are getting damaged, leading to price rise despite the export ban. Onion is now ruling between Rs 1,100 and Rs 1,500 a quintal, based on quality,” he said.

“Farmers are not willing to sell onion if they don't get remunerative price. They prefer to let their produce rot rather than sell at loss,” said an official source, who did not wish to be quoted.

Prices are up also in Gujarat, another major producer.

“Rain has delayed the arrival of the kharif crop. So, prices are up Rs 100 a quintal,” said Mr Jamanbhai Patel of Gondal.

The Agriculture Ministry has projected the kharif onion crop at 15.1 million tonnes this year, down 15 lakh tonnes over last year.

“We think the production will be only 15-20 per cent lower and the loss will not be 15 lakh tonnes,” said Dr R.P Gupta, Director of National Horticultural Research and Development Foundation.

“The onion issue has become political. The Maharashtra Government is under pressure and has asked the Centre to review the ban,” said the official source.

Related Topics
comment COMMENT NOW