Daijiworld Media Network - New Delhi
New Delhi, Jun 12: In a move aimed at providing better price support to onion growers, the Centre has increased the procurement rate for onions under its buffer stock programme to Rs 16.50 per kg from the existing Rs 15.80 per kg. The revised rate will come into effect from June 13.
Announcing the decision, Union Food and Consumer Affairs Minister Pralhad Joshi said the Minimum Assured Procurement Price (MAPP) for storage-grade onions has been revised to Rs 1,650 per quintal after considering prevailing mandi rates and quality standards required for buffer stocking.
The minister also noted that the pricing mechanism has been updated to make procurement more responsive to changing market conditions, ensuring timely support for farmers when prices fluctuate.
The decision follows a review meeting chaired by Joshi with officials of the Department of Consumer Affairs, where measures to strengthen onion procurement and improve returns for farmers were discussed.
The government maintains onion buffer stocks each year through the Price Stabilisation Fund (PSF) to intervene in the market when required and manage price volatility. For 2026-27, the Centre has fixed a procurement target of 2 lakh tonnes, lower than the 3 lakh tonnes procured during the previous year.
The latest revision comes after an earlier increase that had raised the procurement price from Rs 12.70 per kg to Rs 15.80 per kg in response to changing market dynamics.
According to official estimates, onion production in 2025-26 is expected to remain largely stable at 307.37 lakh tonnes, compared with 307.67 lakh tonnes in the previous year.
Union Agriculture Minister Shivraj Singh Chouhan recently reiterated that improving farm incomes and enhancing the quality of life of farmers remain central priorities of the government. He described agriculture as the backbone of the Indian economy and emphasised the importance of ensuring both farmer welfare and nutritional security.
Chouhan also highlighted challenges arising from price declines in crops such as onions, potatoes and tomatoes due to global market factors. He pointed to the Management Information System (MIS), under which farmers can receive compensation when market prices fall below benchmark rates, with the financial burden shared equally by the Centre and state governments.
Additionally, he announced transport assistance for state agencies willing to move agricultural produce from surplus-producing regions to major consumption centres, a measure aimed at reducing distress sales and improving market access for farmers.
The increase in onion procurement prices is expected to offer relief to growers and strengthen the government's efforts to stabilise the market while ensuring remunerative returns for producers.