New Delhi: The government has increased the onion procurement price to support farmers and ensure better returns for their produce. The decision aims to strengthen farmer income and stabilise the agricultural market.
Union Minister for Consumer Affairs, Food and Public Distribution Prahlad Joshi announced the revision. He said the government remains committed to ensuring fair prices for farmers.
New Rate Fixed at ₹1650 Per Quintal
Under the revised system, the government has fixed the onion procurement price at ₹1650 per quintal for storage-grade quality onions.
The new rate will come into effect from June 13. Moreover, the government will use this minimum assured price under its procurement operations.
Officials said they considered mandi prices and overall market conditions before finalising the new rate.
Decision Taken After Market Review
Before approving the revised price, the government reviewed procurement systems and market trends. Additionally, Prahlad Joshi held a high-level meeting with senior officials from the Department of Consumer Affairs.
During the meeting, officials discussed improving procurement efficiency and ensuring direct benefits reach farmers. As a result, the government decided to adjust the procurement price in line with current market realities.
Aim to Protect Farmers from Price Fluctuations
The government stated that onion prices often fluctuate sharply in the market. Therefore, farmers face risks due to unstable rates. Furthermore, onions are a highly perishable crop, which increases market pressure on farmers.
To address this, the government aims to protect farmers from sudden price drops through its procurement system.
PSF System Instead of MSP for Onions
Unlike wheat and rice, onions do not come under the Minimum Support Price (MSP) system. Instead, the government operates under the Price Stabilisation Fund (PSF) mechanism.
Therefore, the revised onion procurement price is part of a broader system that ensures minimum assured purchase rates. This system allows the government to step in and directly procure onions when market prices fall.
Focus on Farmer Welfare and Market Stability
The government said its goal is not only to increase procurement prices but also to improve the overall pricing system.
Moreover, it aims to make the system more market-oriented and practical. Officials added that the revision reflects production levels, state-wise conditions, and market analysis. Consequently, the move is expected to benefit farmers facing low market returns.
Conclusion
The revision in onion procurement price to ₹1650 per quintal marks an important step for farmer welfare.
It ensures better price stability and protects farmers from market volatility. Furthermore, the policy strengthens the agricultural support system under the PSF framework.
Overall, the decision is expected to boost farmer confidence and improve income security in the onion sector.
Key Points of the news:
- Centre raises onion procurement price to support farmers’ income and fair returns.
- New minimum assured price fixed at ₹1650 per quintal from June 13.
- Decision taken after review of mandi prices and market conditions.
- Price Stabilisation Fund (PSF) system continues instead of MSP for onions.
- Aim is to protect farmers from market fluctuations and price instability.
