Relief for Nashik Onion Traders as 13-Day Strike Comes to an End

Onion traders in Nashik have put an end to their 13-day strike, commencing auctions at Asia's largest onion market today. This strike, which began on September 20, had brought a halt to onion auctions in Nashik, affecting major mandis like Lasalgaon and Pimpalgaon.

Source: https://economictimes.indiatimes.com/

Onion traders in Nashik have put an end to their 13-day strike, commencing auctions at Asia's largest onion market today. This strike, which began on September 20, had brought a halt to onion auctions in Nashik, affecting major mandis like Lasalgaon and Pimpalgaon.

The strike was initiated in response to the government's imposition of a 40 percent export duty on onions as a measure to stabilize prices. Traders were also demanding that government-backed entities, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumers' Federation Of India Limited (NCCF), refrain from releasing their onion stock into the retail market at lower prices when there was no price or availability crisis, which could have impacted their profits.

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After numerous rounds of negotiations with both Central and state governments, the traders have opted to terminate the strike. The Niphad mandi resumed auctions on Monday, while the Lasalgaon mandi, along with other mandis, will recommence auctions on Tuesday, October 3.

Although the strike didn't significantly disrupt the supply chain or financially burden traders and consumers, it had severe repercussions on onion farmers who were already grappling with losses due to unseasonal rains and hailstorms.

Bharat Dighole, President of the Maharashtra Onion Farmers Association, expressed concern for the farmers, stating that the damage had already been done. During the strike, farmers were unable to sell their onions, causing further deterioration of their stock and additional losses.

In August, wholesale onion prices had surged to Rs 22-24/kg. To prevent a drastic price increase, the government imposed a 40 percent export duty on onions on August 19, and it also released onions into the retail market at lower prices. This move lowered onion prices before consumers could feel the pinch.

Farmers criticized the government, claiming that this opportunity could have allowed them to make some profit, which the government took away, seemingly prioritizing consumers over their interests. Prior to the strike, onion prices had dropped to Rs 16/kg, compounding the financial strain on onion farmers.