Centre begins onion procurement drive with 2 lakh tonne target

The Indian government has started its annual onion procurement program with a target of collecting 2 lakh tonnes for the price stabilisation buffer. The move comes at a time when onion prices remain sensitive across wholesale and retail markets. Even a small disruption in supply can quickly push prices higher, which is why the Centre has moved early this season.

The procurement will mainly be handled by NAFED and NCCF, two government-backed agencies that regularly step in when food prices become unstable. They are expected to purchase Grade-A onions directly from farmers and mandis in major producing states including Maharashtra, Madhya Pradesh, and Gujarat. Officials want to secure enough stock before weather changes or transport issues affect supply later in the year.

Why onion prices matter so much in India

Onions carry unusual political and economic weight in India. Sharp price spikes have triggered public anger more than once during the last two decades. Since onions are used daily in many Indian households, sudden increases are noticed immediately by consumers. A jump of even ₹10 or ₹15 per kilogram can affect family budgets, roadside food stalls, restaurants, and small grocery shops.

The buffer stock system gives the government room to release onions into the market if prices rise too quickly. Instead of reacting after a shortage becomes serious, the Centre now prefers to build reserves earlier. This year's target is among the larger procurement drives seen in recent seasons.

Farmers are watching procurement prices closely

For onion farmers, government buying can provide some stability during periods of oversupply. Wholesale prices often crash after harvest season when too much stock reaches mandis at the same time. In those situations, farmers sometimes sell onions below production cost because storage facilities are limited and crops spoil quickly in high temperatures.

Procurement agencies usually focus on better-quality onions that can survive long storage periods. Farmers with cleaner and properly sorted produce may benefit more from the drive. However, some farmer groups have previously argued that procurement operations do not always reach smaller villages fast enough, especially in remote growing areas.

Storage and transport remain difficult areas

Collecting onions is only part of the process. Maintaining quality during storage is another challenge altogether. Onion losses during storage can become severe if ventilation, moisture control, or transport handling is poor. Government agencies will need warehouses capable of preserving stock through changing weather conditions over the coming months.

The Centre is expected to monitor retail prices closely through the monsoon season. If markets tighten later in the year, buffer stock onions may be released in major cities to cool prices before festival demand rises. For now, procurement teams are focused on buying enough stock while fresh arrivals continue reaching mandis in large quantities.