Onion market strike sparks price concern
MUMBAI : The onion crisis in India could intensify further as the Agricultural Produce Market Committee (APMC) constituents in Nashik, home to the largest onion market in Asia, have declared an indefinite strike, two days after the Centre imposed a 40% export tax to pre-empt a price spike, following skyrocketing tomato prices on low supply. Retail prices of onion have risen from ₹25-30 a kilogramme (kg) to ₹35-40 kg in parts of Mumbai over the past week and could rise further if the strike spreads to other onion-producing centres of Maharashtra as supply would be hit and due to hoarding by some large traders, according to a Mumbai-based exporter.
India produced 31.8 million tonnes of onion in FY23 and 31.7 million tonnes in FY22. Maharashtra produces 40% of India’s onion crop.
Mumbai APMC onion-potatoes market director Ashok Walunj said state agriculture minister Dhananjay Munde could take up the issue of revoking the tax with the central government on Tuesday. He claimed that poor farmers would suffer “huge losses" because of the tax, which would render Indian exports of onions uncompetitive as Gulf countries like the United Arab Emirates could turn to neighbouring Pakistan to meet their needs.
According to Rupesh Dalal, a Mumbai-based exporter of onions, around 400-450 containers of onion bound for exports were lying at the Nashik market yard. Mumbai APMC receives onions from APMC market yards in Nashik, Ahmednagar, Solapur and Pune.
The Mumbai APMC will keep its onion market closed on 24 August in support of the striking onion farmers of Nashik, which declared an indefinite strike on Monday, Walunj said. Traders said a production shortfall of a good variety of onion pushed up wholesale prices from ₹18 to ₹22/24 a kg
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