AgricultureArticle 9 of 12

Centre raises onion procurement price to Rs 16.50 per kg from June 13

Saturday, 13 June 2026· 5 min read·Source: The Economic Times

The Centre raised the onion procurement price under its price-stabilisation buffer-stock programme to Rs 16.50 per kg (Rs 1,650 per quintal), effective June 13, 2026, up from Rs 15.80 per kg, to improve returns for farmers. Union Minister Pralhad Joshi said the Minimum Assured Procurement Price (MAPP) was revised based on prevailing mandi prices and quality requirements for storage-grade onions. The government has set a procurement target of about 2 lakh tonnes for the year. The move comes as onion farmers, especially in Maharashtra, had been demanding a higher rate of around Rs 30 per kg.

Key Facts & Details

8 points

1
Onion procurement price raised to Rs 16.50/kg (Rs 1,650/quintal) from Rs 15.80/kg.
2
The revision is effective June 13, 2026 under the buffer-stock programme.
3
It is the Minimum Assured Procurement Price (MAPP), announced by Minister Pralhad Joshi.
4
Government set a procurement target of about 2 lakh tonnes for the year.
5
Maharashtra farmers had sought a higher rate of around Rs 30/kg.

Deep Dive

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Onion procurement is undertaken by agencies such as NAFED and NCCF to build a buffer stock that stabilises prices.
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Buffer stocks are released when retail prices spike, protecting consumers, while assured procurement protects farmers.
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Onion output for 2025-26 was estimated at about 307 lakh tonnes.

Exam Focus

To what level did the Centre raise the onion procurement price effective June 13, 2026?

Exam Relevance & Angle

Procurement-price and price-stabilisation measures are agriculture/economy GA with hard figures; exams test the revised rate, the effective date and the buffer-stock mechanism.

Target Exams

SBI POSBI ClerkIBPS POIBPS ClerkIBPS RRB OfficerIBPS RRB AssistantRBI Grade BNABARD Grade ASSC CGLSSC CHSLSSC CPORRB NTPCLIC AAOUPSC CSEState PCS

Background & Context

Under the Price Stabilisation Fund (PSF), the government maintains a buffer stock of essential commodities such as onions and pulses to smooth price volatility. Procurement is carried out by agencies like the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers' Federation (NCCF). The Minimum Assured Procurement Price (MAPP) is the rate at which the government buys storage-grade onions from farmers. When retail prices rise sharply, the buffer stock is released into the market to cool prices, balancing the interests of farmers and consumers. The scheme is run by the Department of Consumer Affairs.