By Srinivas Iyer
The onion export duty has once again emerged as a political flashpoint in Maharashtra, with two ruling Nationalist Congress Party (NCP) MLAs challenging the 20% export duty during Monday’s Assembly session.
Niphad MLA Dilip Bankar and Yeola legislator Chhagan Bhujbal, both representing Nashik district—home to Asia’s largest onion market at Lasalgaon—raised concerns after farmers temporarily halted trade in protest against the duty. State Minister Jaykumar Rawal promised to address the issue with the central government, assuring the duty would be “rescinded at the earliest.”
This renewed controversy threatens to further damage the ruling Mahayuti alliance, which has already suffered electoral setbacks in Maharashtra’s onion belt during both the Assembly and Lok Sabha elections.
“Onion prices have been declining since the year began. The wholesale price was around Rs 2,300-2,400 per quintal but has been falling since early March. On Tuesday, the average price was Rs 1,700 per quintal, and with the summer harvest underway, we expect further price drops,” said Bharat Dighole, president of the Maharashtra Onion Growers Association. He attributes the falling prices directly to the export duty. The market onion prices for end consumer in city like Mumbai continues to be Rs. 35-42 per Kg.
Though India exports only 10-15% of its annual 300 lakh tonnes of onion production, these exports play a crucial role in maintaining stable domestic prices. Government data shows exports decreased from 25.63 lakh tonnes in 2022-2023 to 17.58 lakh tonnes in 2023-2024, with only 6.73 lakh tonnes exported between April and November of the current fiscal year.
The onion issue has repeatedly plagued the Mahayuti alliance. After imposing an export ban in December 2023, the central government reversed course during the Lok Sabha elections in May 2024. Despite this reversal, the alliance suffered significant losses across the onion-growing region.
With the summer crop now being harvested across 10 lakh hectares, traders argue lifting the export restrictions is crucial. “With Eid approaching, Middle East demand is rising. This is the perfect time to remove these curbs to help farmers and boost exports,” noted a trader from Nashik’s Kalwan taluka.
