Onion Prices Issue Gaining Momentum: Will It Influence the Upcoming Assembly Elections?

Pune, 28th September 2024: The onion crisis, which played a significant role in the recent Lok Sabha elections, continues to fuel political debate, raising questions about its potential impact on the upcoming assembly elections. As onion prices soar, the issue has become a focal point of political discussions across the country, with both state and national elections in sight.

Onions have always been a sensitive political issue, and their importance in the current political landscape is growing. Recently, onions from Afghanistan have been imported into Punjab and Delhi, which, according to traders, has contributed to a price increase in domestic markets. Given the political implications, it appears that the onion issue could prove decisive in the upcoming assembly elections.

In response to rising onion prices, the Central Government recently abolished the minimum export price for onions and reduced the export duty by 20%. This move, some suggest, may benefit the ruling Mahayuti government in Maharashtra. However, opposition parties and certain farmer organizations have criticized the decision, claiming it was taken with the assembly elections in mind.

During the Lok Sabha elections, the government’s ban on onion exports proved costly. Farmers, particularly in onion-producing regions like Nashik, expressed their dissatisfaction, and even Prime Minister Narendra Modi faced criticism at public meetings. Mahayuti candidates, too, suffered electoral losses in Nashik, where onion production plays a significant role in the local economy. Deputy Chief Minister Ajit Pawar acknowledged the impact onions had on the election outcome.

The state government lobbied the Centre to reconsider its onion export policy, resulting in the recent reduction in export duty. Maharashtra’s Chief Minister Eknath Shinde, along with Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar, welcomed the decision and expressed their gratitude to the Prime Minister.

However, farmers argue that this policy change will not offer immediate relief, as many have already sold off their stored onion stocks. Most farmers sell their harvest soon after it reaches the market, leaving traders with the bulk of onions still available for sale. As a result, traders, rather than farmers, are likely to benefit from the reduced export duty.

Critics, including some farmers and opposition figures, contend that the Centre’s decision is politically motivated, aimed at influencing the upcoming assembly elections. They also urge the government not to alter the export policy post-elections, asserting that maintaining the current export framework will benefit onion farmers in the next season.