Madhya Pradesh to disburse 4.8 bln rupees to onion, garlic growers

The Madhya Pradesh government may soon disburse 4.8 bln rupees to farmers for onion and garlic procured under the market intervention scheme during the rabi season. Of 10 bln rupees approved as aid for onion and garlic farmers, 4.8 bln rupees would be given in the first phase shortly. Rest would be disbursed in the next phase. State agencies have procured around 873,000 tn of onion and garlic from 180,000 farmers under the scheme. Onion was procured at 1,200 rupees per 100 kg, including an incentive of 400 rupees per 100 kg. Madhya Pradesh government had fixed 800 rupees per 100 kg as protective prices for both vegetables. The move followed fall in spot market prices because of higher production and lower offtake by traders and food processing factories. Onion was sold at 500-550 rupees per 100 kg in key market of Indore when the crop hit the market in full swing in May-June and garlic was sold at 200-300 rupees per 100 kg during same period.