After an eight-year gap, the weekly auction of small onions has officially resumed at the Chettikulam marketing complex in Perambalur, providing much-needed relief to local growers.

  • Weekly auctions resumed at Chettikulam Onion Marketing Complex after 8 years.
  • Farmers to save 8.5% commission previously paid to middlemen.
  • The region's small onions hold a prestigious GI Tag (granted in 2025).
  • Auctions will now take place every Thursday.

In a significant boost to the agrarian economy of Perambalur district, the Department of Agriculture Marketing and Agri Business has officially restarted the weekly auction of small onions at the Chettikulam marketing complex in Alathur taluk. This move comes after an eight-year suspension that left many local farmers vulnerable to market exploitation.

The small onions grown in the Chettikulam region are renowned for their distinct pinkish hue, uniform size, and sharp pungency. Their unique quality was formally recognized in 2025 when they were granted the Geographical Indication (GI) tag. Perambalur remains a vital hub for onion cultivation, with approximately 6,500 hectares dedicated to this crop annually.

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Why This Matters

BozokMedia analysis shows that the resumption of these auctions is a direct response to long-standing farmer grievances regarding price volatility and the influence of trader syndicates. Previously, the suspension of auctions in 2018 forced farmers to transport their produce to distant markets like Tiruchi, incurring high logistics costs and losing significant revenue to middlemen.

Re-establishing direct market access is the most effective way to dismantle predatory middleman networks in rural economies.

The auction was inaugurated on Thursday by District Collector Sharanya Ari, in the presence of Deputy Director C. Deiveegan. The inaugural session saw 28 farmers bringing in 2.79 metric tonnes of produce. The market response was robust, with over 25 traders participating, and first-grade onions fetching a peak price of ₹76 per kg, totaling approximately ₹1.47 lakh in sales.

Beyond the immediate sale price, the economic impact is multifaceted. Farmers will no longer be burdened by the standard 8.5% commission typically demanded by middlemen, nor will they face the heavy transport expenses associated with traveling to major urban hubs.

Did You Know?: The GI tag awarded to these onions in 2025 ensures that only produce from this specific region can legally use the name, protecting its premium market value.

Frequently Asked Questions

1. Why were the auctions suspended in the first place?
The auctions were suspended around 2018, reportedly due to poor patronage by traders and allegations of a syndicate attempting to thwart the auction process.

2. How often will the auctions be held now?
The department has scheduled the auctions to take place every Thursday at the Chettikulam complex.