Centre to procure onions from MP

In order to provide relief to farmers from falling prices of onion, the Centre has decided to procure 200,000 tonnes of the crop from Madhya Pradesh, the country's second largest producer. Madhya Pradesh produces about 2.6-2.8 million tonnes of onions annually.

Wholesale prices of onion have fallen sharply below ~6 per kg in the state as the crop production during late kharif season of the 2016-17 crop year (July-June) was higher.

“We have approved procurement of 200,000 tonnes of onions under the Market Intervention Scheme (MIS) from MP,” a senior Agriculture Ministry official said.

The procurement will be undertaken by the MP-Markfed at ~5,867 per tonne for fair and average quality (FAQ) of onion with overhead expenses of ~1,467 per tonne or actual whichever is less, the official added.

The decision comes against the backdrop of farmers in MP agitating against the fall in prices of agri-commodities. They are seeking higher support price for their produce and waiver of loans.

Onion output from the crop sown during late kharif (summer) season of the 2016-17 crop year has been higher which led to huge arrivals in mandis and fall in prices.

The official said the price drop was because the onion coming into the mandis was of 'table' variety and not stored due to low shelf life.