Hiked duty on onion exports must be lifted, says Sharad Pawar

Sharad Pawar. File Pic

Nationalist Congress Party (NCP) chief Sharad Pawar has said the 40 per cent duty on onion export must be revoked, and also claimed that the Union government might impose restrictions on sugar exports too, reported news agency PTI.

Speaking at an event in Purandar tehsil of Pune district on Thursday, former Union agriculture minister Sharad Pawar said it was the government's responsibility to ensure a fair price for onions.

"For the last few days, farmers in the Nashik region are protesting...they are demanding fair prices for their onion produce. Onions from the country are exported, but the government has imposed a 40 per cent duty on the export. It is the responsibility of the government to give a fair price to onion growers considering the input cost and it is farmers' right to demand it, but no concrete decision has been taken," he said.

The government did announce that it will procure onions at Rs 2,410 per quintal and allow export of 2 lakh tonnes, he noted, adding that in view of the input cost, the procurement price should be increased.
In any case, the 40 per cent duty on the export must be lifted, he asserted.

Pawar also claimed that the Centre is contemplating imposing restrictions on sugar exports too.

"Maharashtra is the second largest sugar-producing state. Brazil is the largest producer of sugar in the world, followed by India. Last year, due to a drought in Brazil, their sugar production decreased. As a result, the situation for sugarcane producers in our country was favourable and they planned to export sugar. But now the central government is thinking of imposing restrictions on sugar exports," Shaard Pawar said.

If this happens, no state government will be capable of giving better prices to sugarcane, Pawar said.

Meanwhile, NCP leader Supriya Sule on Thursday slammed the Maharashtra government on the stir in the state over export duty on onions and said the ruling dispensation was exhibiting "complete policy paralysis" and lack of coordination.

Farmers and traders in Nashik have been agitating since Monday against the Union government's decision on August 19 to impose 40 per cent export duty on onions till December 31.

Auctions in the APMCs in Nashik, including in Lasalgaon, which is the largest wholesale market in India of the kitchen staple, have been affected since Monday, while farmers have also been protesting on the highway seeking scrapping of the export duty decision.

Speaking to reporters, NCP working president Sule said, "I have been raising the issue of onions through social media with (Union Minister of Consumer Affairs, Food and Public Distribution) Piyush Goyal for the last four months. I told him there is excess production of onions in the country and scarcity in some parts of the world."

"I also talked about the opportunity to export onions and requested (the Centre) to come out with a clear policy but, unfortunately, nothing was done," she added.

The Eknath Shinde government is confused because its agriculture minister went to meet Goyal in Delhi on the issue but Deputy Chief Minister Devendra Fadnavis tweeted "something different", she claimed.

"This shows there is no coordination. There is complete policy paralysis in the state government," said Sule, who is Lok Sabha member from Baramati.

When queried that she was talking about a policy paralysis when the government also includes Ajit Pawar, who is known to be a good administrator, Sule said there is a difference between one person working and an entire government having a policy paralysis.

The Union government on August 19 imposed 40 per cent duty on the export of onions to increase domestic availability amid signs of rising prices and in view of the upcoming festival season.

Farmers have claimed the move will create a glut in the domestic market, leading to crash in prices and heavy losses to cultivators.

(With inputs from PTI)