BJP Govt in limbo as ally joins farmers' protest against 40% onion export duty

Mumbai: The Centre's decision to impose a 40 per cent duty on onion exports as a measure to ensure ample supply in the domestic market has created a stir among farmers. The ruling BJP government is now in firefighting mode, especially after a party in the ruling alliance also extended their support to the protesting farmers.

BJP ally Rayat Kranti Sanghatana, led by former minister Sadabhau Khot, expressed dissatisfaction, with Sanghatana's Nashik head, Deepak Pagar, threatening a tractor rally to Mumbai if the government doesn't reconsider the decision within two days.

In response to the escalating situation, NAFED (National Cooperative Agricultural Marketing Federation) announced its decision to resume onion procurement from local farmers starting Tuesday.

This move comes in the wake of Deputy Chief Minister Devendra Fadnavis' discussions with Union Home Minister Amit Shah and Union Commerce Minister Piyush Goyal, aiming to address the mounting farmer agitation following the imposition of the export duty.

To alleviate the concerns of distressed farmers, the government plans to initiate onion procurement programs through designated centres in Nashik and Ahmednagar. The procurement scheme aims to acquire two lakh metric tonnes of onions from state farmers, offering a rate of Rs 2410 per quintal.

Maharashtra Minister for Food and Civil Supplies, Chhagan Bhujbal, expressed his intention to confer with Chief Minister Eknath Shinde to seek a resolution to the crisis. Bhujbal, representing the Nashik district – a significant onion-growing region – assured constituents of his commitment to finding a way forward.

Protests against the export duty decision intensified as traders and commission agents declared an indefinite strike in Nashik's wholesale markets on Monday. Farm organizations also joined the movement, emphasizing their opposition to the government's decision, which coincided with a recent stabilization in onion prices after months of decline.

NAFED officials revealed plans to activate 16 procurement centres at the farm gate level, mirroring similar efforts from earlier in the year when NAFED procured approximately 2 lakh tonnes of onions to stabilize prices.

Congress Maharashtra Chief Nana Patole labelled the decision "anti-farmer" and pledged the party's support to the protesting farmers. Swabhimani Shetkari Sanghatana, led by former MP Raju Shetti, sought intervention from NCP chief Sharad Pawar, who assured the group of raising the issue in the upcoming INDIA bloc meeting in Mumbai on September 1.

Maharashtra, which contributes up to 40% of the country's onion production, is currently grappling with the repercussions of the export duty decision. Lasalgaon in Nashik district, known as Asia's largest onion market, and its approximately 40 lakh onion farmers have become a pivotal vote bank in the state.