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Onion growers in India are concerned
In India, the Union Ministry of Industry and Commerce banned the export of onions indefinitely on 13 September. After the publication of this news that night, there was intense anger among onion growers. In Umrane, Lasalgaon, Satana and Nagpur, they started a sit-in in protest against the government’s decision to stop the sale of products at auction in these markets famous for onions. Angry Umran farmers blocked the Mumbai-Agra National Highway and stopped traffic. The protesters say that the central government has decided to destroy the farmers. When the price of 10 grams of gold reached 50,000 rupees, the price of one kg of meat was 600 rupees. The government did not take any action in these sectors. Did farmers sleep when they sold onions at Rs 5-6 per kg?
Bharat Digha, president of the Maharashtra Onion Farmers Association, condemned the government’s decision to ban onion exports, saying that if the central government did not lift the ban, farmers would not bring onions to market and not a single truck of Onions would come out of Maharashtra. As a result, if there is a shortage of onions and the price goes up, the government will be responsible for it. Farmers will not bow their heads this time.
Onion growers in India have been selling onions at Rs 4-6 per kg since March this year. But it costs them around Rs 20 to produce one kg of onion.
Onion production in India increased by 40 percent last year due to good weather. As a result, many farmers did not sell their produce right away, instead storing it in the hope of selling it at a higher price.
But later, when a lockdown was imposed to stop the spread of the coronavirus, these onions brought farmers to tears.
This year, 40 to 50 percent of stored onions rot due to heavy rains and high humidity in the air. The amount of exports this year was also higher than last year. But the production was not enough.
Due to heavy rains in July and August, the onion crop in the Kharif area was severely damaged. Red onion crops were also affected in Gujarat, Madhya Pradesh, Andhra Pradesh and Karnataka.
There is also a red onion seed crisis in Maharashtra. As a result, the red onion was supposed to be picked from the ground in September, but it took a month and a half to get it. Due to this, the demand for stored red onion in the market increases. For the past four days, farmers have been getting onions at Rs 30 per kg. But just two days after the central government banned exports, the price of onion fell to Rs 10 per kg on September 15.
Bhima Dighal has grown onions on five acres of land in the Jaigaon area of Nashik. Some onions he has sold in the market and the rest he has stored. He expected the price of onions to rise after August, and as a result, the cost of its production would increase. At first he sold some of his onions on the market. He got Rs 400 to 600 for 100 kg of onion. In other words, the price of onion is only four to seven rupees per kg.
It cost him about 2.5 lakhs of rupees to grow onions on five acres of land and he expected to earn 2.5 lakhs of rupees by selling onions in storage. But he saw that half of the onions had rotted from bad weather.
Don’t do it first, then heavy rain
Together with his wife and two children, he himself gathered onions from the ground. Due to lack of money, this time they did not hire workers. Bhima Dighal said that he had stored five lakh kg of onions, but in late July, the onions began to rot. That is why farmers were not getting good prices.
He said the coronavirus infection started first and then heavy rains began in August. This causes the onions to start to rot and farmers are seriously affected. Now the price has risen again. We think we could increase the cost of onion production and raise capital for the next season. But after the export ban, the price of onion has fallen again. I don’t think I can afford it. Also, we don’t know what will happen next season. Why will farmers always bear the brunt of losses?
Traders who export onions after purchasing and processing them have suffered huge losses as a result of the latest government decision. Exporter Vikas Singh said that around 600 containers of onions were trapped in the port as part of their association. The government has imposed a ban on onion exports without any prior indication. The customs officers who unloaded our containers re-unloaded them on the 14th, and half of them are still outside the port. I have 26 containers stranded in the port of Mumbai and five more in the port of Tuticorin. They did not ship these containers on September 14. In the morning, the customs agent reported that there was a problem obtaining clearance to ship them.
“We officially learned of the ban on onion exports on the night of September 14,” he added. But before that, on September 12 and 13, the customs department unloaded the containers from the cargo ship. Onion importers from other countries are very unhappy with such confusion. They call India an unreliable exporter. For all these reasons, we and our country cannot defend ourselves. We are giving opportunities to our rivals China, Pakistan and the Netherlands. On the one hand, the government is subsidizing transportation to make India self-sufficient, but on the other hand, it is imposing bans on exports. As a result, all freight transportation will be stopped.
Exporter Vikas Singh said the government’s decision has hurt onion growers, workers, customs agents, those who make packaging materials and exporters. We do not know exactly how many months we will be in this situation. It is fine if the containers arrive at the port on time, but if a container cannot go it will cost eight to ten lakhs of rupees. We have to think about the people we have employed. We are also concerned about whether someone will buy our products on the international market.
Intermediaries have also been surprised by the decision to impose an export ban. Previously, the government had imposed such a ban. But then there were hints in advance. As a result, the export price of onion also increased. But this year the ban has suddenly been imposed.
The intermediaries did not want to speak openly about it by revealing their names. They say they do not want to be monitored by the government for making such comments. While there were no consumer complaints about the price of onions, many wonder why and in whose interest the government made this decision. There are two reasons for this. First is the choice of Bihar ahead. Previously, the central government had taken the issue into account so that the price of onion did not rise. This could be one of the reasons why voters will be dissatisfied if prices go up.
Another reason may be that the rains have also affected onion yields in international markets such as Pakistan and China. The onion crisis has also occurred in these countries. There will be a delay of 30 to 40 days in the harvest in Holland. As a result, the demand for onion has been maintained in the international market.
The rains have also affected onion yields in Gujarat, Madhya Pradesh and Andhra Pradesh. Although the red onion is not there yet, it is expected to hit the market next October. However, its amount will be less than before.
One of those traders, who did not want to be named, said that as demand increases, the price of onion will also increase. And considering this issue, the government has imposed a ban on exports.
Economists couldn’t be more pleased with the government’s decision. Professor Milind Murugkar, an expert on agriculture and economics, said it was not clear why the government did it. By banning exports, you are in a sense cutting off the money supply. Since economic growth has slowed to 24 percent, we need to increase sales in the market to boost the economy. The money supply will be cut off when onion exports stop. As a result, a large amount of labor from onion growers will also be affected. The need now is to increase purchasing power, which will bring more money to the market. It is wrong to impose any kind of ban on agricultural products because many people depend on it, said the economist Murugakar. On the one hand, he is applauded for passing three bills during the coronavirus epidemic. You say that this will lead to coordination between market management, international markets and agricultural products. They will also get a fair price as there is no control over the farmers. But on the other hand, the government has imposed this unreasonable ban.
He said that people had returned to their villages during the epidemic. Now they depend on agriculture. In such a situation, the income of the agricultural sector must be increased. Farmers must ensure that they get a fair price for their produce. But none of that is happening. Such a decision is detrimental to the economy, said economist Murugan.
Source: BBC Bangla
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