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Daily Current Affairs for UPSC Exam

29Apr
2024

Is ban on onion exports lifted? (GS Paper 2, Polity & Governance)

Is ban on onion exports lifted?  (GS Paper 2, Polity & Governance)

Why in news

  • A recent decision by the Centre over allowing onion imports has further angered onion farmers in Nashik and neighbouring onion-growing regions, who have labelled the move a political gimmick during the Lok Sabha elections. 

 

Ban on export raised unrest among farmers

  • The extension of the allium’s export ban in March had upset farmers in the region earlier, with tensions extending to the political arena.
  • The unrest further deepened after the central government approved the export of 2,000 tonnes of white onions from Gujarat on April 25, 2024.
  • Maharashtra’s onion farming community felt unfairly excluded, as the onion belt primarily grows red onions.
  • Earlier this month, the entry of candidates campaigning for the upcoming Lok Sabha polls was barred in a part of Maharashtra’s famed onion belt — Deola taluka in Nashik — over the ban on onion exports.

 

Central Government allowing the export of 99,150 to only six countries

  • On April 27, 2024, a Press Information Bureau notification stated the central government was allowing the export of 99,150 tonnes of onions to six countries: Bangladesh, United Arab Emirates, Bhutan, Bahrain, Mauritius and Sri Lanka.
  • The export operations will be managed by the National Co-operative Exports Limited (NCEL).

 

Opinion of farmers on Center decision

  • Kuber Jadhav, an onion farmer from Nashik, said that the announcement appears to be a response to growing anger and protests from onion farmers in Nashik, Lasalgaon, Shirdi, Dindori, Solapur, Ahmednagar and other regions.
  • “But the notification isn’t official; it’s a farce.
  • There are no details on when it was issued, and the dates mentioned are from March 2024, when the onion export ban was expected to be lifted, he explained.

 

Confusing and misleading decision

  • The central government had extended the ban on onion exports indefinitely after initially imposing it on December 8, 2023, when it was expected to be revoked by the end of March.
  • The release was followed by appreciation from ruling party leaders, who welcomed the decision.
  • Jadhav said that the notification is designed to create confusion and mislead farmers. “The leaders fear that farmers may vote against them during the ongoing Lok Sabha elections. Hence, this gimmick,” he said.

 

Challenging different rules for white and red onions

  • Farmers have reacted strongly, questioning why there are different rules for white and red onions, and have demanded that the restrictions and the ban be lifted immediately.
  • Bharat Dighole, state president of the Onion Growers’ Association, said the notification is meaningless as it refers to a past decision that is being re-circulated. “This statement indicates that a previous onion crop was allowed to be sold. But it doesn’t help any farmer,” he said.
  • Dighole added that the move is purely to garner votes and is a false attempt to appease potential voters. “Moreover, the export will still be assisted by NCEL, which is the current scenario. There are still restrictions on farmers,” he said. 

 

Way Forward

  • The growers want the freedom to be able to export onions without NCEL playing a role.
  • Many farmers surrendered export licenses in September 2023 to demand a rollback of export duty as well.
  • The country is expected to produce about 5-10 million tonnes of onions this year. Even if the notification holds true, the export amount is 0.33 to 0.35 per cent of the total production — not enough to make profits.

 

Conclusion

  • Farmers have demanded that the central government open up export for at least 1.5 million tonnes of onions, which would enable farmers to earn a decent income.