Bhopal: Madhya Pradesh government will buy onions at Rs 8 /kg from farmers across the state and sell it to shops under public distribution system (PDS) for Rs 2/kg.
Dumping of onions on roads by farmers to protest low price spurred the government to step in and offer a quick-fix before the situation spirals out of control, sources said. Last year, the government had incurred a loss of over Rs 100 crore as onions procured from farmers could not be sold and rotted in warehouses. The government this year will procure and sell onions simultaneously through shops under public distribution system and even NGOs, if needed, sources said.
Procurement, which began on June 5, will be done at 48 centers set up in 22 districts producing onions. Onions will be transported and sold through PDS shops in 10 districts facing shortage and the produce sold at higher price, sources said.
“In this way, losses will be converted into expenditure for public good. It will serve twin objectives. Farmers will earn profit. Citizens will also get onion at lower price in districts facing its shortage,” an official said.
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