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Will onion export ban leave Mahayuti teary-eyed in Maharashtra Assembly Elections after Lok Sabha setback? 

Will onion export ban leave Mahayuti teary-eyed in Maharashtra Assembly Elections after Lok Sabha setback? 

During the 2024 LS polls, the BJP faced significant backlash from onion farmers in Maharashtra. A combination of low onion prices and the controversial export ban led to widespread discontent, contributing to the alliance's loss of 12 seats in the onion-growing regions of the state.

Business Today Desk
Business Today Desk
  • Updated Nov 13, 2024 12:45 PM IST
Will onion export ban leave Mahayuti teary-eyed in Maharashtra Assembly Elections after Lok Sabha setback? Both farmers and opposition parties in the state accused the BJP-led Centre of preferential treatment for Gujarat’s onion farmers. 

Maharashtra, the largest onion-producing state in India, is gearing up for the upcoming Assembly elections. The state is home to Lasalgaon, Asia’s largest wholesale onion market, and produces nearly 40 percent of the country’s onions. However, the recent onion export saga may prove to be a thorn in the side of the ruling Mahayuti alliance following its poor performance in the 2024 Lok Sabha elections. 

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During the 2024 LS polls, the Bharatiya Janata Party (BJP) faced significant backlash from onion farmers in Maharashtra. A combination of low onion prices and the controversial export ban led to widespread discontent, contributing to the alliance's loss of 12 seats in the onion-growing regions of the state. While the export ban was eventually lifted, the political damage had already been done. 

The Union government imposed the export ban on onions starting December 7, 2023, aiming to curb rising domestic prices and prevent shortages. The ban was extended in March 2024, but was lifted on May 4, 2024 — just days before the Lok Sabha elections in Maharashtra’s key onion-growing areas. The government also imposed a minimum export price (MEP) of $550 per metric tonne and a 40 percent export duty, though the MEP was removed in September 2024. 

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Farmers in Maharashtra, particularly in the onion-producing regions of Dhule, Dindori, Ahmednagar, Pune and Nashik, suffered severe losses as the export restrictions hit their livelihoods. The government’s decision to lift the export ban on onions in Gujarat in April, while continuing the ban for Maharashtra, further fuelled frustration.  

Both farmers and opposition parties in the state accused the BJP-led Centre of preferential treatment for Gujarat’s onion farmers. 

According to government data, India exported 260,000 tonnes of onions in the 2024-25 financial year till July this year up from 171,700 tonnes in the previous fiscal year. Onions are a major export commodity for India generating significant revenue. The country’s onion export value stood at Rs 3,326.99 crore in 2021-22, Rs 4,525.91 crore in 2022-23, and Rs 3,513.22 crore in 2023-24, as per the data. 

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The disruption caused by the export ban and the subsequent confusion over its lifting in Maharashtra has left many farmers disillusioned with the ruling coalition. Ajit Pawar, Maharashtra’s Deputy Chief Minister, admitted that discontent among onion farmers over low prices was one of the reasons behind Mahayuti’s poor performance in the Lok Sabha elections.  

Congress has seized on this issue with its leader Jairam Ramesh accusing the BJP-led Centre of favouring Gujarat’s onion farmers over those in Maharashtra.  

The flip-flopping on onion exports, coupled with a lack of timely support for Maharashtra’s farmers, has turned many voters in the state’s north, which accounts for 30 percent of India’s onion production, against the Mahayuti. 

As Maharashtra heads into the assembly elections on November 20, it remains to be seen if the corrective measures implemented by BJP help reverse its losses in the onion belt. The outcome could hinge on how well the ruling alliance addresses the lingering discontent among onion farmers in the state. 

Published on: Nov 13, 2024 12:45 PM IST
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