Onion prices tank in MP, Maharashtra

The onion prices have declined owing to poor quality in Maharashtra and Madhya Pradesh.

This has caused heavy losses to cultivators. In Indore Stock Mandi, the onion prices are in range of Rs. 0.50 to Rs 6 a kg, whereas the retailers are selling it at Rs 3 to Rs 8 a kg.

Maharashtra forms a third of the total (around 15 lakh tonne) onion prodution in the country. Last year, stokists sold onion between Rs 10 and 15 a kg. Keeping in view the last year's prices farmers and traders in MP stored substantial stocks for this year.

Contrary to their expections heavy rains occurred which damaged 50-60 per cent stock. Maximum damage took place in Dewas and Ujjain (MP)that witnessed torrential rains in this monsoon season.

A farmer of Bagli (Dewas district), Narayan Patidar disclosed that out of 300 sacks stored, only 100 to 125 sacks remained suitable to be sold. A Sonkutch farmer Babulal Bawai had a similar expericence.

The onion stock from Maharashtra is also selling at a prices lower than its purchasing cost. Currently, the daily arrival is around 10 to 15 truckload of trucks in Indore Stock Mandi.

Similar amount of local production is also arriving here daily. Farmers are disposing old stocks as early as possible on expectation of the new crop. The farmers have blamed government for not taking any positive action.