Nashik's onion traders seek uniform practice

Around 2,500 traders have surrendered licences in protest against a state govt directive that waived commission charges levied on farmers

Onion traders in major mandis in Maharashtra’s Nashik district have urged the state government to draft a uniform law of trade practices.

Around 2,500 onion traders in 15 mandis in Nashik have surrendered their trade licences in the past fortnight to protest against a state government directive early in July not to charge a four per cent commission from farmers.

Nashik contributes about 20 per cent India’s estimated onion output.

Over several meetings with traders’ representatives, the state government succeeded in convincing them not to charge commissions from farmers. The state government has not altered the existing practice of traders charging a four per cent fee from buyers.
 

REALITY CHECK

• Nashik contributes about 20 per cent of India’s onion output
   
• The price of onion was range-bound in July at Rs 800-900 a quintal
   
• Most of Maharashtra’s 306 mandis have not joined in the protest and are working as usual
   
• In Lasalgaon, where 105 of 466 traders surrendered licences, vegetable trading continues

The protest by Nashik’s onion traders has not caused a shortage because they are buying directly from farmers outside mandis at substantially lower prices than those paid earlier. The price of onion was range-bound in July at Rs 800-900 a quintal.

“After meetings with traders’ representatives, they agreed to charge commissions from buyers and not from farmers. If traders in Mumbai and other parts of Maharashtra do not have a problem, why should traders in Nashik have any?” said an official who spearheaded the move to delist fruits and vegetables from mandis.

Maharashtra has 306 mandis and barring a few all are working as usual. The trade in fruits and vegetables is uninterrupted. Even in the Lasalgaon mandi, where 105 of 466 traders surrendered their licences, vegetable trading continues. But, onion traders’ associations at mandis have announced closure of business.

A functionary of the Lasalgaon Agriculture Produce Markets Committee (APMC), said, “Traders who have surrendered their licences will not return because the government has allowed them to buy directly from farmers.” Efforts to reach Nandkumar Daga, president of the Lasalgaon Onion Traders’ Association, were unsuccessful.

“While farmers bring truckloads of onion loose in Nashik, elsewhere the vegetable arrives in 25 kg or 50 kg packs. In Nashik the price finalised by one trader becomes uniform across the mandi. So the Nashik trader bears an extra cost of Rs 75-100 a quintal,” said Atul Shah, director of the Pimpalgaon APMC.