Increase Procurement Centers, Maharashtra CM Tells Union Government in Reaction to Uproar Over Onion Export Duty

Eknath Shinde, the chief minister of Maharashtra, said on Thursday that he has requested more onion procurement centers from the Union government.

The CM’s comment comes in the midst of farmer and trader demonstrations over the Centre’s intention to levy a 40% export tariff on onions on August 19. In a statement, Shinde said that his administration had asked the union agricultural and commerce ministries to boost the number of procurement centers in order to show its support for onion producers.

“At the moment, 13 centers established by NAFED are used for procurement. 500 metric tons of onions have so far been purchased. We have asked for an increase in the number due to the farmers’ abundance of onions, Shinde added. The Center recently said it will establish special procurement centers in Nashik and Ahmednagar and buy 2 lakh metric tonnes of onions at Rs 2,410 per quintal.

On August 19, the Union government slapped a 40% levy on the export of onions in an effort to enhance local supply in the face of increasing costs and in anticipation of the impending festival season. Farmers assert that the decision would result in a surplus on the domestic market, which will cause prices to plummet and cause farmers to suffer significant losses.

Since Monday, auctions at the APMCs in Nashik, especially in Lasalgaon, the biggest wholesale market for the food staple in India, have been impacted. Farmers have also been protesting on the highway, calling for the decision to impose an export tariff to be overturned.