Govt hikes onion procurement price yet again

The government has increased the Minimum Assured Procurement Price for onions for the seventh time this year, bringing it to ₹26.45 per kg, according to the latest wire material. This significant rise, of about 108%, brings the price more than double the initial procurement rate that began mid-May. The onion procurement price has surged from around ₹12.70 per kg, as reported by Pushan Sharma, director at Crisil Intelligence.

The increase is attributed to tighter supplies, delayed arrivals, and poor quality affecting the crop, particularly in Maharashtra due to unseasonal rainfall that impacted both rabi and kharif onion production. Experts predict that onion prices will likely continue to climb until September or October, when stored rabi onions are expected to run out and fresh kharif arrivals are delayed.