India Ends Onion Export Ban With New Terms Ahead of Maharashtra Polls

Just before the elections in Maharashtra's onion-growing areas, the central government has lifted the export ban on onions. This decision comes after the ban was introduced in December last year to manage domestic onion prices.

On Saturday, the Directorate General of Foreign Trade (DGFT) announced that onions could now be exported with a Minimum Export Price (MEP) of $550 per tonne, along with a 40% export duty.

Farmers in Maharashtra, particularly from the Western and Marathwada regions, were not happy with the export ban. These areas contribute to about 40% of India's onion production. Reports suggest that farmers have been protesting against this ban since January.

The situation escalated when, on April 25, the government allowed Gujarat to export 2,000 tonnes of white onions, a decision that did not sit well with Maharashtra's farmers.

Gujarat, known for its white onion production, received permission for exports ahead of elections in Bhavnagar and Amreli districts. This move caused further dissatisfaction among onion farmers in Maharashtra, who felt neglected as they primarily grow red onions. For instance, Abhishek Salunkhe from Nashik expressed that lifting the ban was a positive step but criticized its delayed timing and selective application.

In Maharashtra's onion belt, the NDA alliance has shown strong performance in past elections. Nashik, a key area for onion farmers and home to India's largest onion market in Lasalgaon, has seen Hemant Godse of Shiv Sena winning Lok Sabha elections consecutively. In the Marathwada region, BJP and Shiv Sena secured most Lok Sabha seats in the last election, with only Aurangabad slipping away by a narrow margin.

The government's decision to lift the onion export ban before the final three phases of elections in Maharashtra aims to provide relief to farmers. However, it remains uncertain how this move will impact the Mahagatbandhan alliance's electoral prospects or if it will address the broader concerns of the region affected by the Maratha reservation movement and other issues.