Government Increases Onion Procurement Price to ₹26.45 Per Kg
· Business · Hindustan Times, The Hindu
The government has raised the Minimum Assured Procurement Price (MAPP) for onions to ₹26.45 per kg, marking the seventh increase this year. This latest adjustment represents a 108% rise from the mid-May procurement price of ₹12.70 per kg. The decision follows a significant increase in wholesale onion prices in Nashik, where rates have climbed from ₹11.50 per kg in May to ₹24.14 per kg in August. Experts attribute the upward price trend to lower rabi production, unseasonal rainfall in Maharashtra, and delays in the upcoming kharif crop due to a late monsoon. Market pressure is expected to intensify between September and October as stored supplies dwindle and fresh arrivals remain limited.
Why it matters
The rising procurement price reflects a tightening supply of onions, which is expected to keep retail prices high for Indian consumers through the festive season. The move aims to support farmers while managing the supply gap caused by adverse weather conditions in key producing states.
Read the original report — Hindustan Times
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