Nashik: The Central Government has decided to begin onion procurement earlier than usual this year in order to keep price fluctuations under control. Procurement for the buffer stock will start from April itself, and the process is being carried out in advance for the 2026–27 season. The objective behind this decision is to enable timely market intervention during the peak arrival period of the rabi crop and to prevent any sharp rise in prices in the coming months.
Under the Price Stabilisation Fund, a target of 2 lakh tonnes of onion procurement has been fixed for this year. According to the Department of Consumer Affairs, the decision was taken at a meeting of the ministerial group reviewing the availability and prices of essential commodities.
The procurement process will be carried out through NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers’ Federation of India). Both agencies have been assigned the responsibility of procuring 1 lakh tonnes each. Instructions have been issued for direct procurement from the current rabi season’s production, and immediate preparations have already begun.
The government’s buffer stock plays a crucial role in controlling onion prices. Particularly during the low-supply period from September to November, stock is released into the market to contain price hikes. This also has a direct impact on controlling retail inflation.
Over the past few years, the procurement policy has become more flexible. In 2024–25, the government had procured 4.7 lakh tonnes of onion and began releasing stocks into the market from September onwards. In the following year, as supply remained relatively stable, procurement was limited to 3 lakh tonnes. However, due to certain issues last year, procurement had started late in July, and therefore, this year, the focus is on advanced preparedness.
