Possible Onion Shortage & Price Hike As Traders In Nashik Go On Indefinite Protest
In a development that has raised fears of an onion shortage in the market and subsequent product price hikes, onion traders have said that they suspended auctions in all agriculture produce market committees in Nashik district of Maharashtra, and their protest will continue indefinitely.?
However, the government has come down heavily on the protesting traders, ordering strict action against them.?
Why are the onion traders protesting??
The Union government¡¯s recent decision to increase export duty on onions up to 40 per cent, which will remain in force till December 31, is what the traders are protesting against. They believe this will make the export of onions difficult and cause huge losses to farmers.?
The Nashik District Onion Traders Association (NDOTA) office-bearer said on Wednesday, "In protest against the export duty hike decision, we have decided to shut the auction of onions in all APMCs in the district indefinitely. This (export duty hike) decision of the Centre will not only make export of onions difficult, but it will also affect the onions in transit, causing huge loss to farmers."?
The other demands raised include the cancellation of export duty on onions, a 50 per cent reduction in market fees, participation by the National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) in auctions and a 50 per cent subsidy in transport of onions.?
Where have the auctions been shut??
On August 20, auctions of onions remained closed at most of the APMCs in Nashik district, including at Lasalgaon, the largest wholesale onion market in India.?
No onions arrived at APMCs, sources said.?
How has the government responded??
The government has taken serious cognisance of the 'bandh'.?
Maharashtra marketing minister Abdul Sattar had said that observing a bandh (shutting auctions of onions) was not right.?
"Secretaries in the departments of cooperation and marketing will discuss the action to be taken as per rules, and Nashik district collector will take the necessary action," he added.?
On Wednesday night, the District Sub-registrar, Co-operative Societies, issued an order directing all APMCs to suspend or cancel the licences of the striking traders and submit the Action Taken Report on September 21.
As per the Maharashtra Agriculture Produce Marketing (Development and Regulation) Act, 1963, all the APMCs should make optional arrangements and take necessary measures to continue the sale and purchase deals of agri produce.?
What is an APMC??
An Agricultural Produce Market Committee (APMC) is the marketing board established by the state governments.?
The idea behind this was to eliminate the exploitation incidences of the farmers by the intermediaries, who force them to sell their produce at low prices.?
APMCs are regulated by states by adopting the Agriculture Produce Marketing Regulation (APMR) Act. According to this act, all the food produced must be brought to the market, and sales are made through auction. The marketplace place, i.e., Mandi, is set up in various locations within the states.? ? ?
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