Nashik: In a major relief for onion growers, the Central Government has once again increased the minimum procurement price for onions purchased through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation (NCCF). Effective July 30, the guaranteed procurement price for Grade-A onions has been revised to ₹2,335 per quintal.
This marks the seventh price hike in the current onion procurement season. Procurement had initially begun at ₹1,350 per quintal, and within just 90 days, the procurement price has been raised by ₹1,085 per quintal, providing significant financial support to onion farmers. The revised rates were announced through an official order issued by the Ministry of Consumer Affairs, Food and Public Distribution.
Under the new directive, procurement of Grade-URS onions has been discontinued from July 30, and henceforth only Grade-A onions will be eligible for procurement under the scheme.
At present, quality onions are fetching satisfactory prices in open markets across Maharashtra, prompting many farmers to sell their produce to private traders instead of government agencies. Against this backdrop, the latest increase in the procurement price is aimed at encouraging higher arrivals at NAFED and NCCF procurement centres and enabling more farmers to benefit from the guaranteed price scheme.
The decision is expected to provide much-needed financial relief to onion growers. Market observers also believe that the Centre may further revise its onion procurement policy in the coming months, depending on market prices and the volume of arrivals.
