Centre's recent onion-rice move could help BJP in Maharashtra, Haryana polls

The ruling Bharatiya Janata Party (BJP) faced the ire of farmers in many states during the Lok Sabha election campaign and failed to secure a majority on its own for the first time in a decade.

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With the election season approaching, it seems the BJP leadership has decided to take no chances in ending its tussle with the farmers and is aiming to keep them in good stead. With the Election Commission expected to announce the dates for the Maharashtra elections in the coming days, and polling in Haryana due on October 5, the Centre has recently allowed exports by removing the year-long ban on rice exports. And onion too.  

Rice and onion farmers benefit

Rice farmers in Haryana and Maharashtra stand to benefit from the decision as it will allow them to export both non-basmati and basmati rice. The decision to permit the export of onions could give the National Democratic Alliance (NDA) the boost it needs in these states, especially Maharashtra, ahead of the polls.

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“The decision to allow the export of non-basmati rice and onions has been taken because of the upcoming polls in Maharashtra and rice-growing states like Haryana. The BJP-NDA combine will face the Shiv Sena under Uddhav Thackeray and the NCP in the Konkan region, which is a rice-growing area, and the Congress, along with the NCP, in the Vidarbha region, another rice-growing area. The BJP leadership wants farmers to benefit, hoping this will help them in the elections,” said Anil Ghanwat, a farmer leader from Maharashtra who was part of the Supreme Court-monitored committee formed during the farmer protests on the outskirts of Delhi.

“The Centre's decision is a masterstroke by Prime Minister Narendra Modi because it has made everyone very happy. Farmers, traders, and exporters are all pleased, as it will benefit everyone involved in rice production and trade. This decision will bring monetary benefits to farmers, traders, and exporters. We had requested the government to lift the ban, and we are pleased that they have agreed to our demands,” Dr Prem Garg, national president of the Indian Rice Exporters Federation (IREF), told The Federal.

Bumper rice crop

Elaborating on the government’s decision, Garg explained that due to a bumper rice crop, government estimates and data indicated the possibility of an oversupply in the domestic market, which could lead to a crash in the price of non-basmati rice.

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“If the Centre had not allowed rice exports, farmers would have been forced to sell their produce at prices lower than the minimum support price (MSP). Now, with this decision, farmers will get better prices in the international market. Most of the basmati rice produced in India is exported to the United States and European markets, while non-basmati rice is exported to African countries, as well as the US and Europe,” Dr Garg said.

Pressure from BJP-ruled states

The decision benefits not just rice farmers. In addition to allowing exports of both basmati and non-basmati rice, the government has also permitted onion exports, a longstanding demand of farmer organisations in Maharashtra.

Soon after the Lok Sabha elections, when the BJP-led NDA realised its performance in Maharashtra was below expectations, Chief Minister Eknath Shinde and Deputy Chief Minister Ajit Pawar explicitly stated that the NDA lost seats in Maharashtra due to the anger of farmers. Out of the 48 Lok Sabha seats in Maharashtra, the BJP-led NDA secured only 17, losing all seats in the regions where onions are grown.

‘Farmers were angry’

“If we look closely, the BJP-NDA lost in almost every onion-growing region. The primary reason for this underperformance in the Lok Sabha elections was that farmers were angry because they wanted the government to allow the export of onions and rice,” Ghanwat said.

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The Centre also received requests from the Maharashtra government to increase the duty on mustard oil, coconut oil, and soyabean oil so that farmers in Maharashtra and other states could benefit from the domestic market.

Reducing resentment ahead of polls

“The Maharashtra government has announced that it will procure soyabean, which the state government will purchase at a price higher than the MSP. It has also promised that cotton farmers will receive a price higher than the MSP. With the customs duty on mustard oil, soyabean, and coconut increased, it is expected that farmers will benefit,” Ghanwat added.