Onion prices drop to US$0.024 per kg in Madhya Pradesh

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Onion growers in several parts of Madhya Pradesh are facing steep losses as prices have dropped to levels below production and transport costs. The sharp decline has led to calls for government support and the introduction of a Minimum Support Price (MSP) for onions and garlic.

Farmer Babbu Malvi from Panth Piploda told PTI, “I planted onions in one bigha of land and got around 6-7 quintals. The rate of onion per kg was Rs 1.99 today, not even Rs 2. This doesn’t even cover our travel costs.”

Reports from Khandwa indicate onion prices have fallen to around Rs 3 (US$0.036) per kilogram, prompting some farmers to destroy their crops. Growers attribute the price collapse to export restrictions and rising supply from both stored and newly harvested onions.

In the Malwa region, farmers are urging the government to fix an MSP to help cover costs estimated between Rs 30,000 and Rs 35,000 (US$360–420) per acre, or roughly Rs 74,000 to Rs 86,000 per hectare. The Ratlam Agricultural Produce Market recorded a minimum price of Rs 200 (US$2.40) per quintal, equal to Rs 2 (US$0.024) per kilogram, with an average of Rs 600 (US$7.20) per quintal. Some farmers received as little as Rs 250 (US$3) per quintal, which barely covers transportation expenses.

Wholesale prices have declined sharply compared to the previous harvest in April. While higher production has contributed to the fall, retail prices remain around Rs 15 (US$0.18) per kilogram, showing a wide gap between farmer earnings and consumer prices.

Source: Mathrubhumi

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