The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) on Friday began onion procurement at Rs 12.35 per kg, with increased production and export-related factors affecting market prices.
Speaking at an event in Satara in Maharashtra, Union Agriculture Minister Shivraj Singh Chouhan said onion exports have been affected due to the ongoing crisis in West Asia, triggered by the joint US-Israeli airstrikes on Iran on February 28.
“As onion exports have been affected due to the West Asian crisis, onion prices have fallen. I would like to announce that, with effect from Friday, the procurement price for fresh onions will be Rs 12.35 per kg. We will procure the entire stock and support onion growers,” he said.
He assured farmers that the government would not leave them alone during difficult times, and directed officials to ensure transparent and smooth procurement processes.
The Union government has decided to procure 2 lakh tonne of onions through its agencies NAFED and the National Cooperatives’ Consumers Federation of India (NCCF). However, the target for onion procurement target is 33 per cent fewer as compared to the onion procurement done during last year.
In the last financial year 2025-26, the Centre procured three lakh tonne of summer onions. Both NAFED and NCCF had also procured one lakh tonne of onions each.
Reports claimed that there has been a drop at the wholesale onion prices in the APMCs (Agricultural Produce Market Committees). The average wholesale price of summer onions is between Rs 1,100 and Rs 1,250 per quintal at the APMCs. It may drop further due lack of demand from the international markets, they said.
The Centre has also been creating a buffer stock of onions for a few years to stabilise the erratic wholesale onion prices and to meet a potential onion scarcity that could arise between the months of August and September.
“This year, the Centre has instructed both central agencies to procure onions through primary cooperative societies, cooperative institutes and co-operative market federations, who are expected to procure onions directly from the farmers from the Agriculture Produce Market Committees,” said an NCCF official.
The onion procurement will be done under the Price Stability Funds (PSF).
