India Raises Onion Procurement Price to Rs 16.50/kg, June 14

By Huzaifa Zahoor

June 14, 2026

07:11 AM

3 min read

Share with:

preferred News SourceSelectMeykaasyourpreferredNewsSource

Key Points

Government raised onion procurement price 4.4% to Rs 16.50/kg from Rs 15.80/kg.

Maharashtra farmers demand Rs 30/kg citing high input costs, creating Rs 13.50 gap.

Buffer stock procurement targets 2 lakh tonnes in 2026, down from 3 lakh tonnes prior year.

Price Stabilisation Fund balances farm support against consumer food inflation risk.

Be the first to rate this article

India’s government raised the onion procurement price to Rs 16.50 per kg from Rs 15.80 per kg, effective June 13. The increase applies to buffer stock purchases under the Price Stabilisation Fund. The move aims to support farmer incomes in Maharashtra, India’s largest onion-producing state, but falls short of farmer demands for Rs 30 per kg.

What Changed in the Procurement Price

The Minimum Assured Procurement Price (MAPP) rose 4.4% to Rs 1,650 per quintal from Rs 1,580 per quintal. Union Food and Consumer Affairs Minister Pralhad Joshi said the revision reflects prevailing mandi rates and quality standards for storage-grade onions. The government refined its pricing mechanism to respond faster to market shifts.

Why Farmers Remain Unsatisfied

Maharashtra farmers are demanding Rs 30 per kg, citing rising labour, fertilizer, and irrigation costs. Some farmer groups have pushed for rates as high as Rs 3,000 per quintal. The revised procurement price still falls well short of ensuring reasonable profits, farmer representatives contend.

How Buffer Stocks Stabilise Markets

The government maintains onion reserves through the Price Stabilisation Fund to manage price swings. Buffer stock procurement supports growers when prices crash and releases stocks to cool retail prices during spikes. For 2026, the government plans to procure 2 lakh tonnes, down from 3 lakh tonnes in 2025-26.

The Balancing Act for Policy Makers

The price increase reflects a dual challenge: supporting producer incomes without stoking food inflation for consumers. India’s onion production stands at 307.37 lakh tonnes for 2025-26. NAFED and NCCF handle procurement through the Price Stabilisation Fund.

Final Thoughts

The 4.4% price hike provides modest relief to onion farmers but leaves a Rs 13.50 gap between the new rate and farmer demands. The government must balance farm support against consumer food costs.

FAQs

Why did the government raise the onion procurement price?

To support farmer incomes during soft market prices and rising input costs, particularly in Maharashtra, India’s largest onion-producing state.

What is the new procurement price for onions?

Rs 16.50 per kg, up from Rs 15.80 per kg, effective June 13, 2026. This equals Rs 1,650 per quintal.

How much did farmers demand?

Maharashtra farmers demanded Rs 30 per kg, citing high labour, fertilizer, and irrigation costs as reasons for the demand.

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Huzaifa Zahoor

Co Founder

Huzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.