India: Madhya Pradesh government intent on halting onion price drops

The state government, led by Kamal Nath, said it will encourage cooperative societies, government undertakings, private bodies and traders not to buy the commodity below Rs 800 (€10.19) per 100 kg.

Traders who will buy onions at Rs 800 from farmers will be provided up to 75 per cent subsidy on storage and transport if they sell the commodity outside the state. The government said that, often, when prices plummet in mandis in the state, onions sell at a much better price in markets like Delhi, Ranchi, Kanpur, Lucknow and Kolkata.

Should the prices fall below Rs 800 per quintal despite this in May and June, the government announced, it will introduce a price deficiency scheme. Under the scheme, growers who sell the commodity at designated mandis will be paid the difference of the modal rate and Rs 800.


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