Union government increases onion procurement price by 13%
The Union Consumer Affairs Department has increased the procurement price of onions by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer. This move aims to boost procurement and ensure better returns for farmers, coming amid rising retail prices and farmer complaints about unremunerative prices. NAFED and NCCF are procuring onions from various states. Despite production estimates of 307.37 lakh metric tonnes for 2025-26, the government anticipates prices to inch up due to normal seasonality and speculative buying, though current stock levels are adequate.
Key Points
- The Union Consumer Affairs Department increased the onion procurement price by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer.
- The hike aims to provide better returns to onion farmers and strengthen buffer procurement efforts.
- NAFED and NCCF are responsible for procuring onions from various states.
- Despite adequate stock levels, the government anticipates a seasonal price increase, partly due to speculative buying.
Exam Facts
- New onion procurement price: ₹2,125 per quintal (13% increase).
- Procurement agencies: National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers' Federation of India (NCCF).
- Onion production estimated at 307.37 lakh metric tonnes (LMT) for 2025-26.
- Average all-India retail price: ₹31 per kg.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.