The NDA, which suffered a significant setback in Maharashtra’s onion belt during the recent Lok Sabha elections, winning only one of six seats primarily due to an export ban on the crop, faces further challenges in the upcoming Assembly polls. Farmers and traders have expressed their disappointment that the Union Budget did not lift these restrictions.
A BJP leader in Nashik acknowledged that prolonged restrictions on onion exports are hurting the party’s prospects, lamenting that they failed to convince the central leadership about the political repercussions. The onion belt, comprising Dindori, Nashik, Beed, Aurangabad, Ahmednagar, and Dhule, accounts for around 34% of India’s onion production, with Nashik alone contributing over 40% of the state’s output. Except for Aurangabad, where Shiv Sena’s Sandipan Bhumare won, the NDA lost all other seats in the onion belt. Notable losses included BJP stalwarts like Sujay Vikhe-Patil and Pankaja Munde to newcomers Nilesh Lanke and Bajranj Sonawane from the NCP (SP).
A Shiv Sena (Eknath Shinde) leader from Nashik’s Balgan taluka said the opposition has relentlessly raised the issue of onion prices. “We had asked our leaders to raise the export issue with the Centre. With the Assembly elections around the corner and the Budget not addressing the issue, it may backfire on us,” he stated.
Farmers, too, voiced their concerns. “Onion prices were low for most of last year due to the export ban. I thought the government would lift the restrictions in the Budget, but the Centre does not seem to have learned its lesson. This will continue to be an issue in the Assembly polls. Most of us are hurt by the government move,” said a farmer from the Dindori Lok Sabha seat who voted for the NCP (Sharad Pawar) in the recent polls.
Amol Kolhe, the newly elected Shirur MP of the NCP (SP), echoed the farmers’ sentiments, criticizing the Mahayuti government for failing to address the agrarian crisis in the state. “Be it onion or soybean, the government has turned a blind eye to them. It will pay for this in the upcoming Assembly elections,” he said.
In December, the Centre banned onion exports anticipating lower production due to the drought in Maharashtra. While the ban was partially lifted in March with a Minimum Export Price (MEP) of $550 per tonne and 40% export duty, traders argue this has “squeezed” the export chain, making Indian onions less competitive internationally.
Despite onions currently trading at satisfactory prices between Rs 2,600 and Rs 2,800 per quintal in the Lasalgaon wholesale market, the country’s largest, Bharat Dighole, president of the onion growers’ association, warned that this trend might not last. He emphasized that previous losses have not been compensated by the recent prices. “If the government does not take immediate measures, the Lok Sabha trend (with the BJP’s tally dropping from 23 in 2019 to nine) is likely to be repeated in the Assembly polls,” he stated.
Even with the agricultural budget pegged at Rs 1.32 lakh crore – a 5% increase from last year – the government’s stance on onions has disappointed farmers. Jaydutt Holkar, former chairperson of the Lasalgaon Agricultural Produce Marketing Committee (APMC), noted that the younger generation of farmers prioritizes economic issues over empty promises and emotive topics, making the NDA’s position precarious in the upcoming elections.