The wholesale APMC onion-potato market in Vashi, Mumbai, will shut down on August 24 in protest against a 40% export duty on onions. Traders threaten an indefinite strike if the government doesn't relent. Wholesale prices of onions have fallen to ₹18-22 per kg from ₹25-26 per kg last week. The market saw the arrival of 125 vehicles carrying onions, in line with average supply. The retail price in Vashi was ₹30-35 per kg on Monday, down from ₹40 per kg. Farmers argue that the duty will hurt their earnings and survival.
NAVI MUMBAI
Navi Mumbai, India - Aug. 20, 2023:A view of APMC Onion-Potato market after Government imposes 40 percent duty on Onion export at Turbhe, in Navi Mumbai, India, on Sunday, August 20, 2023. (Photo by Bachchan Kumar/ HT PHOTO) (HT PHOTO)
The wholesale APMC onion-potato market at Vashi will shut down on August 24, in support of the farmers who are opposing the imposition of 40% duty on export of onions. Traders say the government has taken a knee jerk reaction that will hurt the farmers and have threatened an indefinite strike if the government doesn’t relent.
Wholesale prices of onion at the market that supplies the commodities to MMR region, have come down to ₹18-22 per kg against ₹25-26 per kg last week. The market witnessed the arrival of 125 vehicles carrying onions, which is as per the average supply. The retail price in Vashi was ₹30-35 per kg on Monday down from ₹40 per kg.
The traders under the aegis of Kanda Batata Adat Vyapari Sangh (KBAVS) held a meeting on Monday at the market, during which the decision to strike was taken.
Said APMC director Ashok Walunj, “Nasik market has shut down and more markets will shut in the coming days. We traders here have decided to shut our market on Thursday to send a strong message to the central government. If it doesn’t relent then we shall join the other markets next week for an indefinite strike.”
Stated Walunj, “The 40% duty on export has hurt the farmers very badly. Those sitting in Delhi have no idea about it. They feel that ₹30 per kg of onion in retail is a high price, when the farmers here are getting little for their efforts.”
He explained, “The farmers manage to eke out a living through income from exports even if the payments come late. Now the exports will not be feasible and they will lose out on the earnings. With no rains in onion producing regions of Nasik, Ahmednagar and Pune, almost 50% production has already been hit. How will the farmer survive?”
According to Datta Rajpure, a committee member of KBAVS, “The farmer is able to actually sell only 40% of his produce. 20% of the crop turns out bad and has to be thrown at the field itself. 40% of the stock is rejected in the market for lower quality and has to be sold at ₹4-7 per kg. The remaining 40% is selling for ₹18-22 per kg.”
He added, “The farmer spends around ₹1.25 lakh for producing the crop on a 1 acre land. So ultimately he gets an average of only ₹10-12 per kg price. How do you expect him to survive and the market, which is dependent on the farmers, to function.”
Said Ashok Karpe, an onion wholesaler, “The government seems to have taken the decision in the context of tomato prices. It is not as if the onion prices have skyrocketed. This knee jerk reaction will harm the farmers greatly.”