No onion or soya auctions have been taking place at Lasalgaon — the country’s main onion trading hub located at Nashik in Maharashtra. Over 180 traders, part of the Lasalgaon Onion Traders Association, have refused to participate in the auction process over licences issued to a new trader who is not part of the local traders’ association. They are demanding stay on the permission given to the new trader to conduct onion auctions and also a stay on the showcause notices issued by the district administration to the merchants for stopping auctions at the Lasalgaon market committee. Market sources pegged the losses at around R2 crore. Uncertainty prevails on when the market will open.
Nandkumar Daga, president, Lasalgaon Onion Merchants Association, told FE the association has been in existence for 50 years. “As per tradition, any new merchant who wishes to participate in the auction process should first approach the association and work as a sub-trader under any member of the association for a couple of years before he can be considered eligible for an independent licence,” Daga argued.
He claimed that such traders participated in auctions only during the market boom and refused to pick up the commodity when prices were low. In contrast, traders at Lasalgaon have been working in the interests of farmers to ensure that none of them return home empty handed and almost all onions brought to the market are purchased by the traders, he said. Daga added that a delegation of traders had met NCP leader Chhagan Bhujbal and he had assured that their demands will be met.
In the last couple of days, the market committee has issued showcause notices to traders under Section 19 of the APMC Act, demanding why action cannot be taken against them.
Sunil Bansode, the district deputy registrar, said the traders have no right to hold the entire market to ransom. The new merchant has been issued licences as per the rules of the market committee and as such there is nothing illegal in the new merchant’s participation in the auction process.
Bansode said the demand of the traders is incorrect and officials of market committee should take immediate action against the traders, failing which the district administration will be forced to take action against the market committee. According to him, the traders should immediately allow the market to reopen and participate in onion auctions. Bansode said the market committee should also make alternative arrangements for auction to ensure that farmers do not suffer and the auction process continues.
Daga argued that generations have been part of the auction process at Lasalgaon and they are responsible to ensure that farmers get their money, something which cannot be guaranteed by a new trader. “The new trader should initially work for 2-3 years to gain the confidence of locals,” he said.
Nanasaheb Patil, chairman of the Lasalgaon APMC, insisted he was making full efforts to ensure the market reopens. “However, the demand of the association is not correct and the market committee has issued new licences in the past. Alternate arrangements are being been made at the Vinchur and Niphad market committees for farmers to sell their produce and the farmers shall be informed beforehand,” he said.
Around 3,500 quintals of onions are traded at the market on a daily basis. The modal prices are around R1,400 per quintal , with rates ranging from R900 to R1,600 per quintal. In the last four days around 13,000 to 14,000 quintals were not traded, causing losses to the tune of R2 crore, market sources said.
