The onion trade in Nashik is still struggling, even after the central government’s recent decision to remove export duty on onions. This move, welcomed by both farmers and traders, was intended to boost onion exports. However, despite the removal of the export duty, onion exports have come to a halt due to technical issues.
Lakhs of tonnes of onions, meant for export, are stuck at the border. Over 300 containers are also held at Mumbai port, and around 100 onion trucks destined for Bangladesh are stalled. In Nashik alone, 70-80 onion trains are unable to move forward, leaving traders and exporters in a difficult situation.
The root of the problem appears to be a delay in updating the export system to reflect the recent government decisions. This has caused issues with customs documentation, preventing the onions from being exported. Traders fear that if the situation continues, the onions may rot, leading to significant financial losses.
Onion exporters are urging the central government to intervene and resolve the technical issues quickly. Many are frustrated, believing this situation could have been avoided if the necessary system changes were made before the decision was implemented.
In addition to reducing the export duty, the government has set the onion export price at $550 per tonne. While this has boosted domestic market prices, many farmers feel it doesn’t benefit them, as they have already sold their crops at lower prices earlier in the season due to export bans and additional export duties imposed at that time.
The onion issue, which caused a stir during the Lok Sabha elections, continues to be a point of tension. With the upcoming state assembly elections, the central government is under pressure to resolve the ongoing challenges in the onion trade swiftly.