New Delhi: The Centre has increased the onion procurement price under its buffer stock programme to Rs 16.50 per kg, effective from 13 June, in a move aimed at improving returns for farmers amid ongoing concerns over production costs and market volatility.

The revised rate, up from the current Rs 15.80 per kg, was announced after a review meeting chaired by Union Food and Consumer Affairs Minister Pralhad Joshi. The decision forms part of the government's broader efforts to strengthen onion procurement operations and support growers through the Price Stabilisation Fund (PSF).

In a post on social media, Joshi said the Minimum Assured Procurement Price (MAPP) for storage-grade onions had been revised to Rs 1,650 per quintal based on prevailing mandi prices and quality requirements. He added that the pricing methodology had also been refined to make procurement more responsive to changing market conditions.

The government maintains onion buffer stocks each year under the PSF to enable market intervention when prices fluctuate sharply. For the 2026-27 procurement season, the Centre has set a target of two lakh tonnes, lower than the three lakh tonnes procured during the previous year.

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The latest revision comes amid growing demands from onion farmers in Maharashtra, India's largest onion-producing state. Growers have been seeking a procurement price of Rs 30 per kg, arguing that rising input costs have significantly increased the cost of cultivation.

Earlier this week, farmer groups claimed that the procurement rates offered by the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation of India (NCCF) were insufficient to cover production expenses.

Representatives of the Maharashtra State Onion Growers Association said farmers continued to face losses despite some relaxation in procurement norms, urging the government to ensure better price realisation for producers.

Onion procurement for the current season began on 15 May. According to the latest government estimates, onion production is expected to reach 307.37 lakh tonnes in 2025-26, broadly unchanged from the 307.67 lakh tonnes recorded in the previous year.

The government hopes the revised procurement price will provide additional support to farmers while helping maintain adequate buffer stocks for future market interventions.