Indian government has hiked onion procurement price to ₹2,125 per quintal, a 13% jump, aiming to bolster procurement strategies and give farmers financial boost as production costs rise.
New price,up from ₹1,875, was announced by Union Consumer Affairs Department. Onion procurement will be handled by National Agricultural Cooperative Marketing Federation of India and National Cooperative Consumers’ Federation of India,working together on this.
Recently,retail onion prices have shot up,even though government tried to stabilize market. Farmers are frustrated, saying compensation isn't enough,even as 2025-26 production is pegged at 307.37 lakh metric tonnes, just below 307.67 lakh metric tonnes of 2024-25.
Officials say there's enough onions for now,though prices might swing with seasons. Maharashtra, Madhya Pradesh,Gujarat have enough stocks,with daily arrivals expected over 50,000 metric tonnes. Maharashtra alone could bring in over 30,000 metric tonnes. Wholesale prices hover around ₹18 per kilogram .
Average retail price now ₹31 per kilogram,agricultural market is facing hurdles. Weather issues like late monsoon,poor rainfall in spots push traders to speculate. Demand from key hubs stays low at these prices. Nashik and parts of Madhya Pradesh see speculation,driven by hopes for future price jumps,not current demand.
Government's keeping an eye on this,committed to fair pay for farmers while trying to keep prices steady for consumers . But how long can this balance last…
