Maharashtra Onions Rot as Smugglers Smuggle, Farmers Demand Ban Lift

Indian onions are currently being sold for as much as ₹140 per kilogram in international markets like Malaysia, Sri Lanka, and the UAE, significantly higher than the wholesale price in Nashik, India's main onion-growing region. Following India's export ban on onions effective December 8, the price in Nashik plummeted from over ₹40 per kg to around ₹13. The ban, aimed at reducing domestic prices, resulted in a spike in international prices, as India, the second-largest onion producer, typically exports 40,000-50,000 tonnes weekly.

Traders report that smugglers are illegally exporting 700-800 tonnes of onions weekly by misdeclaring them as other commodities like potatoes, shallots, or grapes. The profit from these illicit exports is estimated at around ₹30 lakh per container, each holding 28-30 tonnes. The Central Board of Indirect Taxes & Customs issued a circular on January 20 instructing the customs department to take legal action against exporters involved in these illegal shipments.

Onion farmers in Maharashtra have been protesting for two months, demanding the lifting of the export ban. The smuggling of onions indicates that only a few traders are benefiting from the ban, while farmers face losses due to low prices. A team of central government officials recently visited Maharashtra's onion-growing region to assess the situation and is expected to make a recommendation regarding the export ban, which is set to expire on March 31.