New Delhi, 04 July (H.S.): The Central Government has increased the procurement price of onions by 13 per cent to Rs 2,125 per quintal from the earlier Rs 1,875 per quintal. The revised procurement price came into effect on July 4 and is expected to provide better returns to onion farmers while strengthening the government's buffer stock.

In a statement issued on Saturday, the Ministry of Consumer Affairs, Food and Public Distribution said the procurement price for onions under the Price Stabilisation Buffer has been revised upward by 13 per cent. The Ministry said the decision aims to ensure remunerative prices for farmers and enhance buffer stock procurement to maintain price stability.

According to the Ministry, onion procurement for the Price Stabilisation Buffer is being undertaken through the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and the National Cooperative Consumers' Federation of India Limited (NCCF). The revised procurement price is expected to improve farmers' incomes while supporting the government's efforts to build adequate buffer stocks.

The Ministry further said that, according to the Second Advance Estimates for 2025-26 released by the Department of Agriculture and Farmers' Welfare, onion production is estimated at 307.37 lakh metric tonnes (LMT), almost unchanged from the estimated production of 307.67 LMT in 2024-25.

Based on these production estimates, the Ministry said there are currently no concerns regarding the overall availability of onions in the country. However, it noted that some increase in prices may occur due to normal seasonal fluctuations.

The Ministry also stated that onion stocks remain adequate in major producing states such as Maharashtra, Madhya Pradesh and Gujarat, and there are currently no indications of any shortage in onion storage levels.

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Hindusthan Samachar / Jun Sarkar