Onion Traders in Nashik are on protest opposing government's recent decision to raise the export duty on onions

On Wednesday, a representative of the Nashik District Onion Traders Association (NDOTA) stated that the organization was opposing the Union government's recent decision to raise the export duty on onions to a maximum of 40%, which will remain in effect till December 31.

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The Nashik district of Maharashtra's onion traders have announced that they have postponed auctions in all agricultural produce market committees and that their protest will last indefinitely. This move has caused consumers to worry that there will be a shortage of kitchen staples in retail marketplaces and a rise in costs.

The District Sub-registrar for Co-operative Societies issued an order on Wednesday night instructing all APMCs to revoke or suspend the licences of the striking merchants and submit the Action Taken Report by September 21 after taking serious notice of the situation.

Challenges could arise with onions already headed to other countries

We have made the decision to halt the onion auction in all APMCs in the district immediately in protest of the decision to increase export duties. The office-bearer claimed that the Centre's move to increase export duties will not only make it harder for farmers to export onions, but it will also have a negative impact on onions that are already in transit.

Wednesday morning, Maharashtra's marketing minister Abdul Sattar remarked that it was improper to observe a bandh, which would have prevented onion auctions from taking place.

Notably, most of the APMCs in the Nashik area, including Lasalgaon, the biggest wholesale onion market in India, kept their onion auctions closed on August 20.

Onion auction is suspended

We had given the government till September 19 to respond to our demands. The office-bearer explained that because our expectations have not yet been met, we have chosen to halt the onion auction indefinitely.

Other demands made by traders include the removal of the export tax on onions, a 50% cut in market fees, participation in auctions by the National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED), and a 50% subsidy on the transport of onions.

As a result, on Wednesday, onion auctions were not held in all APMCs in the Nashik district, including the Lasalgaon APMC. According to sources, no onions arrived to APMCs.

According to the government order, Khandu Deore, head of the Nashik District Onion Traders Association, wrote Minister Sattar on September 13 with four demands and a threat to stop taking part in onion auctions as of September 19. In light of this, the minister has scheduled a meeting of departmental representatives from Marketing for September 26.

Farmers facing difficulty in selling their products

The minister also asked the traders to postpone their protest. Despite this, the traders and brokers went on strike, which created numerous issues for farmers while trying to sell their various agri products, according to the order.

The traders and brokers maintained their stance even in the cabinet meeting on Wednesday (Sept 20). The order of immediate legal action has been issued as a result, it claimed.

Accordingly, all APMCs must make optional arrangements and take the required steps to maintain the sale and purchase of agricultural produce in accordance with the Maharashtra Agriculture Produce Marketing (Development and Regulation) Act, 1963. The licenses of such traders are subject to suspension or cancellation by APMCs.

The ruling further said that the board of directors and secretary of an APMC would be subject to disciplinary action should they fail to comply with it.

The APMCs must immediately suspend or revoke the licenses of such dealers in accordance with the provision. The directive further stated that a necessary procedure should be put in place to give licenses to new purchasers who want to acquire commodities at the APMCs.

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