Nashik's onion hit by economic crisis in Sri Lanka

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Nashik's onion hit by economic crisis in Sri Lanka

Mumbai : Nashik district, known as the farmers' district and the largest onion market in Asia, is in high demand in the country and abroad. Sri Lanka is India's second largest consumer of onions after Bangladesh. But there has been an unprecedented economic crisis and subsequent bankruptcy. His shot is now likely to hit the onion.

Apart from Bangladesh and Sri Lanka, Malaysia and Singapore are the largest exporters of onions to India, but at present only onion traders are facing financial crisis. About 200 containers a week, or about three to three and a half thousand tons of onions go to Sri Lanka from Nashik district alone. However, exports have more than halved since last month due to the economic crisis in Sri Lanka.

Information provided by exporters

Yogesh Thakkar, an exporter, owes about Rs 4 crore for 50 containers to Sri Lankan importers. "We kept sending the goods but after that the money stopped coming," Thakkar said. His government no longer has dollars, so it doesn't get paid. The Government of India should pay attention, one and a half to two hundred containers were passing through Nashik district every week, which is about three and a half thousand tons but now it has come down to one thousand tons since last month. My money is stuck in 40 to 50 containers. If this situation continues, we will have to stop sending goods completely, the farmers will be hit and the prices will go down. Now there is no money to buy goods from farmers, said Thakkar.

Vikas Singh, another onion exporter, says that Sri Lanka is the second largest consumer of onions after Bangladesh. This year, onion production has increased but if there is no export, there is a crisis. How will the trade be if there is no money? It is understood that the Government of India has offered a line of credit but the banks have not received any instructions from the Reserve Bank. At present we have 40% onion which is to be sold in ten days. The last factor is the farmer who will be hit the hardest. Government of India should do something, 80% of agricultural commodities are sent to Sri Lanka by India. It started almost a year ago. It is unknown at this time what he will do after leaving the post.