Government Raises Onion Procurement Price to Rs 2,335 per Quintal, Sixth Hike This Season

The Central government has once again increased the procurement price of onions for buffer stock. The price has been raised from Rs 2,175 per quintal to Rs 2,335 per quintal. The new procurement price came into effect on July 30, marking the sixth increase in the current season. The government has assigned onion procurement to two agencies - NAFED and the National Cooperative Consumers’ Federation (NCCF).

However, along with the price hike, the relaxation in quality standards has been withdrawn. Government agencies will now procure only A-grade onions. The agencies have been given a target of procuring two lakh tonnes of onions for the 2026-27 buffer stock. So far, however, they have procured only slightly more than one lakh tonnes. In Nashik district, NAFED is procuring onions through 30 centres, while NCCF has 27 procurement centres.

Small Farmers Unlikely to Benefit

Bharat Dighole, founder-president of the Maharashtra Onion Farmers’ Association, told Rural Voice that small farmers will not benefit from the increase in the procurement price. Small farmers generally lack storage facilities and therefore sell their produce at very low prices at the beginning of the season. The increase in the procurement price will benefit farmers who are already financially better off and have the capacity to store onions for several months.

Dighole said the government should announce the procurement price at the beginning of the season based on the cost of production. According to him, the price should be at least Rs 3,000 per quintal.

Dighole also made a serious allegation, claiming that those currently selling onions are either large, financially stronger farmers or “paper farmers” who have declared themselves as farmers only on paper. He alleged that at the beginning of the season, such people purchase produce from small farmers, store it and later sell it at higher prices. He claimed that there would not be even 50 farmers in any village of Nashik district who are currently selling onions they themselves have produced.

A-Grade Onions Fetch Rs 3,600 per Quintal in Market

Narendra Wadhavane, secretary of the Lasalgaon APMC in Nashik district, told Rural Voice that government agencies are not procuring onions directly at the market yard. Instead, separate procurement centres have been established for this purpose. Farmers who are members of the agencies appointed by NAFED and NCCF for procurement are taking their produce to these centres.

Wadhavane said farmers are currently bringing around 25,000 to 30,000 quintals of onions to the market every day. The average price is currently between Rs 2,100 and Rs 2,200 per quintal, while A-grade onions are fetching up to Rs 3,600 per quintal.