Centre Raises Onion Procurement Price, Buffer Stock Buying Starts At ₹16.50/kg

New Delhi: The Centre has increased the onion procurement price under its buffer stock programme to Rs 16.50 per kg from Rs 15.80 per kg, effective Saturday, in a move aimed at improving returns for farmers and strengthening market intervention operations.

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, based on prevailing mandi prices and quality requirements.

Procurement Linked To Market Conditions

According to the Minister, the pricing methodology has also been refined to make onion procurement more responsive to changing market conditions. The decision follows a review meeting chaired by Joshi with officials of the Department of Consumer Affairs on Thursday.

The government maintains onion buffer stocks annually under the Price Stabilisation Fund (PSF) to enable timely market intervention during periods of supply shortages or price spikes.

Lower Procurement Target This Year

For 2026-27, the Centre has set a procurement target of 2 lakh tonnes, lower than the 3 lakh tonnes procured in the previous year. The procurement price had earlier been revised to ₹15.80 per kg from ₹12.70 per kg in response to market trends.

Government estimates show onion production at 307.37 lakh tonnes in 2025-26, marginally lower than 307.67 lakh tonnes in 2024-25.

Support Measures For Farmers

Union Agriculture Minister Shivraj Singh Chouhan recently reiterated that increasing farmers’ income and improving living standards remain key priorities of the government.

Highlighting price pressures in crops such as onion, potato and tomato, Chouhan pointed to the Management Information System (MIS), under which farmers can be compensated for the gap between market prices and benchmark rates, with the financial burden shared equally by the Centre and State governments.

He also announced transport subsidies for State agencies moving farm produce from production centres to major consumption markets.