In a move aimed at providing better returns to onion growers, the Central government has increased the Minimum Assured Procurement Price (MAPP) for onions under its buffer stock programme from Rs 15.80 per kg to Rs 16.50 per kg. The revised rate came into effect on June 13, 2026.
The decision follows a review meeting chaired by Union Food and Consumer Affairs Minister Pralhad Joshi with officials of the Department of Consumer Affairs to strengthen onion procurement operations and improve farmer remuneration.
Announcing the revision, Joshi said the procurement price has been recalibrated based on prevailing mandi rates and the quality standards required for long-term storage onions. The new procurement price translates to Rs 1,650 per quintal.
The minister also stated that the government has refined its pricing mechanism to make procurement more responsive to changing market conditions, enabling quicker interventions when needed.
The Centre maintains onion buffer stocks every year through the Price Stabilisation Fund (PSF) to manage market volatility and ensure adequate supplies during periods of shortage. For the current season, the government plans to procure 2 lakh tonnes of onions, lower than the 3 lakh tonnes purchased during 2025-26.
The procurement drive for the 2026 season began on May 15 and is being carried out primarily through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation (NCCF).
Despite the latest increase, onion growers in Maharashtra, India's largest onion-producing state, remain dissatisfied. Some farmer groups have been demanding a procurement rate of as high as Rs 3,000 per quintal, arguing that rising cultivation expenses, including labour, fertilizer and irrigation costs, have significantly increased production costs.
Farmer representatives contend that the revised procurement price still falls well short of ensuring reasonable profits. They maintain that current rates offered by procurement agencies are inadequate to cover the actual cost of cultivation and provide sustainable returns.
According to the latest official estimates, India's onion production for 2025-26 is projected at 307.37 lakh tonnes, marginally lower than the 307.67 lakh tonnes recorded in the previous year.