Onion trade in Nashik disturbed as farmers, traders protest stock limit

Pune: Onion auctions were in limbo a day after the government set stock limits, and farmers were left in the lurch with their produce, as traders keep most primary markets in Nashik closed, demanding a cushion period.

At some Agricultural Produce Market Committees (APMC), the farmers forced the wholesale mandis to close as auctions started on very low quotes, while in other markets, those who had brought thousands of quintals of onion for sale, were stranded for the entire day as the traders stopped auctions demanding clarity on government orders.

In a series of decisions, the ministry of consumer affairs banned onion exports and imposed stock limits of 100 quintals on retail traders and 500 quintals on wholesale traders on Sunday evening to rein the prices.

An arthi, or the middleman who buys onion from farmers at these markets, usually picks up 100-10,000 quintals a day. “If we have more stock with us because we are not able to pack or load it due to labour or other issues, it can be considered a violation of the stock limit order,” said a trader from Nashik.

At Umrane APMC in Nashik, the farmers had brought about 15,000 quintals of onion for sale. “Unlike in other markets, where the farmers bring onions packed in bags, the Nashik farmers bring lose onions in trolleys. Traders need a couple of days to do its packing and loading. Hence, we have requested the district collector to give us a cushion period of 4-5 days for packing and loading,” said Khandu Devare, a senior trader from Umrane.

Though the central government had imposed the minimum export price (MEP) of $850 per tonne, sources claimed that some quantities of onion were still being exported to Bangladesh and Sri Lanka by under-reporting the price. This had forced the government to slap a blanket ban on exports.

At Lasalgaon, the market committee could convince the traders to start auctions in the evening. “The traders have decided to start auctions in the evening as farmers had been waiting since morning. Ours is an open market and it is likely to rain,” Jayadatta Holkar, chairman of Lasalgaon APMC, said.

The markets remained closed in Satana, Umrane, Nampur and in neigbouring blocks, as farmer sentiment against trade restrictions were strong. Some markets like the Nampur APMC are expected to remain closed till Wednesday.

“The government intervenes when prices rise but it didn’t show up when onions were selling at Rs 1/kg,” said Ajay Nerkar, an onion trader from Nampur.

Farmer Milind Darade, from Niphad taluka, who had to sell his onions for 5 paise in 2016 is furious about the price control measures. “The farmers didn’t get good returns in the last five years. I have just about 45 quintals of onion left with me and this is deteriorating because of the weather. Why is the government not letting me make some money? We have decided to keep the Niphad market closed till we do not get good prices,” he said.

Setting stock limits and banning exports are unlikely to ease the onion prices but may help keep the prices stable, said traders.

Shipments of some exporters are stuck because of the ban and imports haven’t reached yet as the government has not made its stand on phytosanitary criteria clear. “Some shipments, which were loaded with onions for landing in India, may have to be diverted to other destinations as there is still no clarity about the fumigation requirement norms,” said Ajit Shah, a Mumbai-based onion trader.