Ajit Pawar urges Centre to scrap 20% onion export duty, citing farmers’ plight

NEW DELHI : Maharashtra Deputy Chief Minister Shri Ajit Pawar on Thursday urged the Narendra Modi-led Central government to revoke the 20% export duty on onions, citing the financial distress faced by farmers.

In a letter to Union Commerce Minister Shri Piyush Goyal, Mr. Pawar detailed the challenges confronting onion growers in Nashik, a key production centre, where falling prices are compounding their woes. Farmers are reportedly selling onions at an average rate of ₹2,400 per quintal, significantly below the cost of production. On Thursday, the farmers briefly stopped auctions at the Lasalgaon APMC, Asia’s largest wholesale market of the key kitchen staple in Nashik district, over the price drop. 

The exhaustion of the summer yield and the arrival of fresh crops have resulted in an oversupply, forcing farmers to sell onions below the minimum support price. This situation is exacerbated by unseasonal rains and climate changes, which have further decreased farmers’ earnings, Pawar noted.

Maharashtra produces more onions than any other state in India, with Nashik’s Lasalgaon hosting Asia’s largest onion market. However, as the centre imposes a 20% levy on onion exports, the state’s farmers lose international market competitiveness. The removal of this duty is necessary for their economic recovery, Pawar emphasized.