Govt Offers Support By Rising Onion Procurement Prices

The government increases Onion Procurement Prices to ₹16.50/kg to support Onion farmers, enhances market stability, and boosts buffer stock operations.

The announcement has been made under its buffer stock programme by raising the procurement price to ₹16.50 per kg (₹1,650 per quintal) with effect from June 13, 2026. The move deals with growth in farmer incomes, whereas boosting the country’s buffer stock system used forprice stabilisation. The government officials stated that the revised Onion Procurement Prices were determined after assessing prevailing mandi rates and the quality standards required for storage-grade onions. The rise is expected to provide an offer to Onion farmers who have been facing rising cultivation expenses, including higher costs of fertilisers, pesticides, labour, and transportation. The decision will have an impact on major onion-producing states such as Maharashtra, where Onion growers have repeatedly demanded better support prices to offset increasing input costs. Farmer organisations assert that while the revised rate is a positive step, additional measures may be required to ensure sustainable returns from Onion production. Significantly, the government’s procurement programme also plays a crucial role in maintaining adequate Onion supply in the country. By building buffer stocks during periods of excess production, authorities can release onions into the market during onion shortages. It helps in controlling price volatility and protects consumers from sudden spikes.

According to experts, the latest revision could encourage farmers to continue investing in Onion production, ensuring a stable Onion supply chain along with supporting rural livelihoods. As demand and production costs evolve, policymakers may continue reviewing procurement mechanisms to balance farmer welfare with consumer interests.