Onion prices crash to 30 paise a kg in Neemuch

Months after onion prices soared to Rs 40 per kg in many mandis across the country, forcing the Centre to import the commodity, its prices are at an all-time low.

Whoelsale prices of onion in Neemuch district of Madhya Pradesh have crashed to 30 paise a kg on Wednesday due to bumper harvest and low demand.

"Because of a bumper crop, onion is being sold at 30-50 paise a kg while only a few days ago, it commanded Rs 15-20 per kg in the local market," Dayaram Patidar, a farmer from Diken, told PTI. "We are forced to throw away the crop in the garbage as we are not even recovering the money spent on transportation from fields to the mandi."

Every day, nearly 5,000 bags of onion arrive in Neemuch mandi. Around 4,000 bags were off-loaded on Wednesday, too, but there were no buyers, the farmer said. "We were hoping that we will get at least Rs 20-30 a kg. At this price, it is really difficult for us to survive." Onion trader Satyanarayan Rathi said prices have plummeted because of an increase in supply.

Krishi Upaj Mandi director Rajendra Singh Tomar also blamed the bumper harvest and declining demand for the fall in prices.