Despite favourable prices for onions and sugar in the international market, the central government has imposed a ban on their export, causing significant concerns for farmers and industries alike. The ban comes at a time when both commodities were witnessing strong demand globally, leading to potential financial losses for stakeholders.
Speaking with The Free Press Journal, Kuber Jadhav, Coordinator of Swabhimani Shetkari Sanghatana in Nashik, emphasised that while the government aims to control prices through its decisions, producers often overlook this aspect. He suggested that allowing unrestricted export of onion and sugar would directly benefit both sectors.
The decision to ban sugar exports stemmed from the anticipation of a decline in sugarcane production during the fall season. This unexpected drop in production led to losses for sugar mills, which were previously benefiting from continuous export opportunities. Similarly, the government's estimate of onion in Maharashtra did not materialise, prompting the imposition of export restrictions. The ban on onion exports, initially imposed in December, remains in force to date.
Restriction on ethanol production
The central government's late realisation of the impact of export restrictions on sugar production led to sudden orders to sugar factories, disrupting their operations. Additionally, restrictions on ethanol production further complicated the situation, exacerbating the challenges faced by the sugar industry.
The continuous delay in the central government's import-export policy has had severe consequences for onion and sugarcane growers, who bear the brunt of these decisions. Despite the government's intentions to control prices, these measures often overlook the plight of producers.
To mitigate the challenges faced by farmers and industries, stakeholders advocate for a more liberal approach to import-export policies. Allowing the onion and sugar industries to export without restrictions would directly benefit both producers and industries, providing them with much-needed relief.
As the export ban persists amid the backdrop of the Lok Sabha elections, concerns regarding the economic impact of these measures continue to loom large. It remains to be seen whether the government will reconsider its stance to alleviate the burden on farmers and industries.
Onion and sugarcane growers are being hit hard every year due to the continuous delay in the import-export policy of the central government. It is sad that although the government is taking such decisions to keep prices under control, the producers are not thinking about it. If the government allows the export of onion and sugar without any restrictions, both the entities will directly benefit from it.
