India Increases Onion Buffer Stock Price by 24% to Support Farmers
Government raises onion buffer stock purchase price 24% to Rs 15.80/kg
Image: The Economic Times
The Indian government has raised the onion procurement price under its buffer stock programme by 24.4% to ₹15.80 per kg. This adjustment aims to protect farmers amid changing market conditions. The procurement target for the year is set at 2 lakh tonnes.
- 01The new procurement price for onions is ₹15.80 per kg, up from ₹12.70 per kg.
- 02The government aims to procure 2 lakh tonnes of onions this year, a decrease from 3 lakh tonnes in 2025-26.
- 03Buffer stocks of pulses have reached an all-time high of 43 lakh tonnes as of May.
- 04Tur and chana procurement under the Price Support Scheme has yielded 5.34 lakh tonnes and 20.35 lakh tonnes, respectively.
- 05Pulses imports have decreased by nearly 30%, with chana imports falling by 51%.
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The Indian government has announced a 24.4% increase in the procurement price for onions under its buffer stock programme, raising it from ₹12.70 per kg to ₹15.80 per kg. This decision, communicated by Anupam Mishra, Additional Secretary at the Ministry of Food and Consumer Affairs, is aimed at supporting farmers in light of market dynamics. The procurement season began on May 15, with the revised price effective from May 22. The government has set a target of procuring 2 lakh tonnes of onions for the current year, a reduction from the 3 lakh tonnes target from the previous year. Additionally, pulse buffer stocks have surged to an unprecedented 43 lakh tonnes, significantly higher than the 18 lakh tonnes recorded in May 2025. The government has also reported a substantial decline in pulse imports, with a nearly 30% drop to 60 lakh tonnes in 2025-26, and chana imports plummeting by 51%. This briefing comes amid concerns regarding food and fertilizer security influenced by recent geopolitical developments in West Asia.
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The increase in onion procurement price aims to provide better income for farmers, potentially stabilizing local markets.
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