Onion Mandi Prices Crash in Madhya Pradesh: Farmers Unable to Recover Even Transportation Costs
02 June 2025, Bhopal: Onion farmers across Madhya Pradesh are facing a dire economic situation as mandi (wholesale market) prices for onions have plummeted to unsustainable levels. On May 26, 2025, wholesale prices in several mandis dropped to between ₹50 and ₹150 per quintal—well below the cost of production. The combination of unseasonal rains and weak market demand has severely impacted sales, compounding farmer losses.
Production Costs Outpace Market Prices
Farmers report that the average production cost for onions ranges between ₹12 to ₹15 per kilogram. However, current mandi prices are hovering at or below ₹1 per kilogram. Continuous rainfall over the past week has further damaged crops, especially those stored in the open, accelerating the decline in market prices.
According to the Joint Farmers’ Association, the situation is financially unviable. “With no price support mechanism in place, farmers are unable to even recover basic costs, let alone generate any income,” said a spokesperson. The association has urged the government to begin procurement at a minimum price of ₹24 per kilogram.
Lack of Storage Infrastructure Worsens the Crisis
Storage limitations present another major challenge. Many small and marginal farmers lack access to proper storage facilities, leaving them no option but to sell at distress prices. While private storage options exist, their high costs render them unaffordable for most cultivators.
One farmer expressed concern, stating, “If prices continue like this, repaying loans will be impossible. We need immediate government intervention.”
Farmer Demands: MSP and Procurement Support
Farmers are appealing for the implementation of a Minimum Support Price (MSP) of ₹24 per kilogram for onions, immediate government procurement from mandis, and compensation for crop damage under existing crop insurance schemes.
Silence from Authorities Raises Concern
Despite growing distress in the farming community, neither the state government nor the central government has announced any concrete relief measures. The lack of response has triggered frustration among farmers, who are dealing not just with financial setbacks, but also with threats to their overall livelihoods.
In Ujjain’s agriculture market, farmers reported that they are incurring losses with every quintal sold. “It’s not just about market fluctuations anymore; it’s about survival,” said one local farmer.
Also Read: National Roundtable Calls for Urgent National Policy on Weed Management to Safeguard Food Security
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