Onions Will Make Leaders Cry

It may be recalled that in 1998 Delhi state elections the BJP miserably lost to the Congress.  A major contributing factor to the BJP’s defeat was the skyrocketing onion prices due to crop failure in the country. This is one example of the political implications of onion prices. This time around somewhat the same situation has arisen. So, who will bear the brunt is the question hovering in the minds of people.  

During the festive season, rising onion prices have brought tears to many eyes. The government’s policy is solely responsible for this. The Centre’s decision to ban onion exports, aimed at reducing domestic prices, backfired politically and the disregard for onion farmers’ demands, cost the BJP-led alliance dearly in the state in recently concluded Lok Sabha polls. Ahead of the Lok Sabha elections, the onion farmers in Nashik had launched a ‘rath yatra’ to bring attention to their plight as they were disappointed with the elected members from the state for not raising the issue of the export ban in Parliament and failing to voice farmers’ concerns.

The surge in onion prices in India is expected to drive up international costs and food expenses. The support prices for onions have skyrocketed, with the Centre purchasing them at a rate 74 per cent higher than last year in Maharashtra, the nation’s top onion-producing state. Last year, onions were bought at Rs 16.93 per kg, but this year’s procurement price has risen to Rs 29.5 per kg, with payments made directly to farmers through the Direct Benefit Transfer (DBT) system to cut out intermediaries. To manage the situation, the Centre is distributing onions through NAFED outlets, mobile vans, and other channels at Rs 35 per kg. Significantly, the basic question remains unanswered as to how long this arrangement will work. Even when procurement prices were as low as Rs 16.93 per kg, national prices seldom fell below Rs 30 per kg. Currently, onion prices are hovering between Rs 60 and 70 per kg.

Nationwide the onion prices are expected to remain high, as the Maharashtra government is allocating Rs 1500 crore to purchase onions from local farmers and traders, aiming to maintain their support for upcoming elections. In December 2023, the government imposed an export ban on onions to tackle escalating retail prices ahead of the Lok Sabha elections. This measure led to a drop in onion prices by around 40 per cent, from Rs 42.2 per kg in December 2023 to Rs 24.5 per kg by March 2024. On March 23, 2024, the export ban on onions was extended indefinitely in response to the Lok Sabha election. This move led to a decrease in prices.

In Nashik, Maharashtra’s onion-growing heartland, the discontent among onion farmers led to the defeat of Union Minister of State Bharati Pawar in the Dindori constituency in the district and BJP alliance candidate Hemant Godse in Nashik.

Onion farmers also played a crucial role in toppling BJP alliance candidates in 11 Lok Sabha constituencies.