The agricultural sector is not stranger to challenges, and one of the issues that has come to the fore lately is that of India’s Jawaharlal Nehru Port Trust(JNPT) onion exporters. Hundreds of Onion boxes began to rot and were delayed to rot, exposing the complexity of global trade and the balance between supply, demand, and government policy.
The Farmers of the state of Maharashtra face their biggest problems. The Central Government Decided to impose a 40 percent customs duty on onion exports. This has caused delays in the export process as onions have piled up in the port of JNPT past four days. Unfortunately, this long delay caused more than 100 boxes to start rotting.
The increase in export duty by central governments leads to an increase in the prices of onions in the market. As the prices of tomatoes are at their peak then it is easy to
predict the future prices of onions. If the prices of onions rise in a few days then it may affect consumers as it strains household budgets and not only consumers but also the farmers hit by a reduction in profit. Farmers might prioritize selling their produce within the domestic market due to the export duty. This could lead to oversupply in the local market, potentially affecting local prices and supply-demand dynamics. The imposition of a high export duty could discourage farmers from engaging in export activities. It might make exporting less economically viable or profitable, leading farmers to focus more on the domestic market instead.
Onions are exported from India to Malaysia, UAE and Gulf countries, Sri Lanka, and other countries. However, the rapid increase in export taxes causes an increase in prices. Therefore, exports come to a standstill as foreign enterprises buy onions at increased prices. Some traders are trying to sell onions in the local market.
Therefore, the central government decided to buy 200,000 tons of onions. Special sales centers will be established in Nashik and Ahmednagar to protect the interest of onions grown in Maharashtra. The Deputy Chief Minister of Maharashtra Devendra Fadnavis said that our state’s onion producers will get a lot of help from this. On the other hand, Kisan Sabha leader Dr. Ajit Nawale demanded that the central government remove the 40 percent tax on exports if only 200,000 tons of onions are not thawed. Therefore raising the price of the onions and spoiling onions can effect the economic condition. Additionally, It can fluctuate the household budget of consumers and the profit of farmers.
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