Vehicle movement was disrupted for around two hours due to the blockade, leading to long queues stretching for kilometers on both sides.
The farmers dispersed after police assurance.
"The farmers were extremely upset over the delay in purchase of onions on the MSP in the mandi. They called off their protest after assurance that their grievances would be addressed," said Ashta Police Station Incharge BD Beera.
The Madhya Pradesh government had announced a Minimum Support Price (MSP) of Rs 8 per kilo for onion after a farmer protest turned violent in Mandsaur on June 6 in which six persons were killed in police firing.
However, there are complaints from many places that onion is not being bought from the farmers at the MSP announced.
For several days, farmers have been waiting patiently in the mandi to sell the onion crop, with several juge bags of the vegetable getting spoiled due to heavy rain.