The prohibition on onion exports seems to be impacting the grape crop in India’s Nashik district. The cessation of onion exports to Bangladesh has led to an increase in import duty on grapes. This has allegedly resulted in traders compensating their losses at the expense of the farmers, causing grape prices in the domestic market to plummet, and leaving farmers in a desperate situation.
The Nashik district’s agricultural economy relies heavily on onions, sugarcane, and orchards, with grapes contributing significantly to the annual economic turnover. However, escalating water scarcity issues, coupled with the onion export ban imposed in December by the union government, have placed farmers under increasing strain. The additional cost of a Rs 104 per 100 kgs duty on goods imported from India, imposed by Bangladesh, is being passed onto the farmers, leading to lower grape prices.
With the ongoing cold weather in North India, farmers are being forced to sell their grapes at reduced prices. The current inflationary period is widening the gap between the cost of maintaining vineyards and the profit from production, increasing the risk of farmers falling into debt.