Nashik: The Union Ministry of Commerce’s decision to reduce the RoDTEP export incentive for onions by 50 per cent has caused immediate disruption across major onion markets in the country. The sharpest impact was seen at Lasalgaon Agricultural Produce Market Committee, widely regarded as Asia’s largest onion market, where average prices dropped by nearly ₹100 per quintal within a single day.
Following protests from farmers, farmer organisations, and traders, the Government of India later reversed its decision and restored the export incentive to 1.9 per cent. However, by then, the market had already suffered significant losses.
Currently, nearly two lakh quintals of onions are arriving daily in the Nashik district. Within just half a day of the RoDTEP cut announcement, onion prices fell by approximately ₹100 per quintal. This sudden decline directly affected farmers, with preliminary estimates suggesting losses of nearly ₹20 crore for onion growers in the district within barely six hours.
At the Lasalgaon Agricultural Produce Market Committee, onion prices ranged from a minimum of ₹400 to a maximum of ₹1,400 per quintal, with an average of around ₹1,000. Just days earlier, the average price had hovered near ₹1,100 per quintal. News of the RoDTEP incentive cut triggered an immediate price slide.
The ripple effects were felt across other market committees in the Nashik district as well. Traders and farmer organisations criticised the administration and urged the Centre to either withdraw the RoDTEP cut entirely or announce a separate special package for onions. While the Centre eventually backtracked, stakeholders remain dissatisfied.
“The government changes its decision overnight and withdraws it by afternoon, but in this confusion, prices collapse, and the losses are ours alone. Policy shocks hurt farmers, and no one takes responsibility.”
— Rama Bhosale, Farmer, Gondegaon
“If there is no consistency in export policy, international buyers turn away from India. The government’s U-turn is welcome, but it should have come on time.”
— Vikas Singh, Onion Exporter, Nashik
