Ajit Pawar urges centre to revoke 20% export duty on onions to support farmers

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Deputy Chief Minister Ajit Pawar has called on the Union Government to immediately revoke the 20% export duty on onions, stating that the move would help farmers secure better prices for their produce and prevent financial losses. In a letter to Union Minister for Commerce and Industry Piyush Goyal, Pawar highlighted the need to support Maharashtra's onion farmers, particularly in light of increased import opportunities in neighbouring countries like Sri Lanka.

The demand comes after a concerted effort by Maharashtra legislators, including MLAs Nitin Arjun Pawar, Dileeprao Bankar, Hiraman Khoskar, and Saroj Ahire, who approached the Deputy Chief Minister seeking intervention. Taking their concerns into account, Ajit Pawar wrote to the Centre urging swift action to alleviate the challenges faced by the state's farmers.

Opportunity to boost Onion export

Ajit Pawar pointed out that Sri Lanka has recently reduced its import duty on onions by 20% and is actively increasing onion imports. This development presents a significant opportunity for farmers in Maharashtra, especially in Nashik, to export their red onions to international markets. However, the central government's 20% export duty on onions has made it challenging for farmers to capitalise on this demand. Pawar stressed that removing the duty would enable farmers to get fair, cost-based prices and stabilise the market.

Maharashtra, particularly Nashik district, is one of the largest onion-producing regions in India. This year, the state's farmers have battled adverse weather conditions, including unseasonal rains, which have severely affected crops. Despite these challenges, a new harvest of red onions has recently entered the markets. However, with an average market price of ₹2,400 per quintal, many farmers are unable to recover their production costs.

Red onions, which are less durable than other varieties, need to be sold immediately, forcing farmers to accept low prices. According to Pawar, this has added to the financial strain faced by onion growers. He emphasised that maximising exports is crucial to stabilising prices and ensuring farmers receive appropriate compensation for their produce.

In his letter to the Union Minister, Pawar argued that withdrawing the export duty would create a win-win situation for farmers and traders, allowing them to access international markets at competitive rates. Such a move, he added, would protect the livelihoods of onion farmers and bolster the agricultural economy.

"The removal of the 20% export duty will help sustain the prices of red onions and ensure farmers receive cost-based returns, reducing their financial losses," Pawar wrote in the letter.

The Deputy Chief Minister expressed hope that the Centre would respond positively to his request and take immediate steps to address the concerns of onion farmers.

With red onions flooding local markets and prices dropping steadily, a timely decision by the central government could provide much-needed relief to Maharashtra's struggling farming community.