Govt hikes onion procurement rate to Rs 16.5 per kg from Saturday

New Delhi, June 12 (IANS) In a bid to ensure better returns for farmers, the government has raised the onion procurement price, under its buffer stock programme, to Rs 16.50 per kg from Rs 15.80 per kg, effective from Saturday.

Union Food and Consumer Affairs Minister Pralhad Joshi said in a post on X that based on prevailing mandi prices and quality requirements for storage-grade onions, the Minimum Assured Procurement Price (MAPP) has been revised to Rs 1,650 per quintal, with effect from June 13, 2026.

“The pricing methodology has also been refined to make procurement more responsive to market conditions,” the minister posted.

He chaired a meeting on Thursday with officials from DoCA to strengthen onion procurement and ensure better returns for the farmers.

The buffer stocks are maintained annually under the Price Stabilisation Fund (PSF) for market intervention purposes.

The government has set a procurement target of 2 lakh tonnes for the year, down from 3 lakh tonnes procured in 2025-26.

The Centre had earlier revised the price to Rs 15.80 per kg from Rs 12.70 per kg, citing market dynamics.

Onion output is estimated at 307.37 lakh tonnes in 2025-26 as compared to 307.67 lakh tonnes in 2024-25, as per the government data.

Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan said recently that agriculture is the backbone of the Indian economy and farmers its soul, therefore, enhancing farmers’ income, improving their standard of living, and making farming easier remains the government’s top priority, while also emphasising nutrition security as an essential component of policy to provide nutritious food to the public.

Mentioning the challenge of falling prices in crops like potato, onion, and tomato due to international factors, he cited the utility of the Management Information System (MIS), under which payment for the difference between model rates and market prices can be made directly to farmers, with 50 per cent share borne by the Centre and 50 per cent by the state government.

Additionally, he shared the decision to provide a transport subsidy to state agencies that wish to transport farmers’ produce from production areas to major cities.

—IANS

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