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GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
RAJYA SABHA
UNSTARRED QUESTION NO. 832
TO BE ANSWERED ON THE 06/02/2026
TIMELY PROCUREMENT OF ONION BY AGENCIES
832. Dr. Medha Vishram Kulkarni:
Will the minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:
(a) whether Government is aware of the fact that onion farmers in major producing regions, including
Maharashtra, are facing difficulties due to delayed procurement and not receiving remunerative prices
for their produce in a timely manner;
(b) if so, whether any assessment has been conducted regarding the effectiveness of procurement
operations and market interventions undertaken by agencies such as NAFED and NCCF;
(c) whether delays in payments to farmers and price volatility have adversely impacted farm incomes
and storage decisions; and
(d) if so, the corrective measures being taken to ensure timely procurement, prompt payments and fair
price realisation for onion farmers?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
(SHRI RAMNATH THAKUR)
(a) & (b): As per the information received from Department of Consumer Affairs, procurement of
onions under Price Stabilization Fund (PSF) Onion operation through National Agriculture
Cooperative Marketing Federation of India ltd. (NAFED) and National Cooperative Consumers’
Federation of India ltd. (NCCF) was undertaken during June-August 2025 in Maharashtra, Gujarat and
Madhya Pradesh. Onion procurement was completed in 1st week of August 2025 and disposal through
retail sale commenced from 4th September, 2025 at discounted prices. Subsequently onions have been
released through open market sale across major consumption centres. The scheme was assessed by
Development Monitoring and Evaluation Office (DMEO), NITI Aayog in 2023-24 and found to be
farmers’ satisfaction.
(c): Funds for payments to farmers for onion procured under PSF have been released to NAFED
and NCCF as per quantity procured. The agencies further released the payments to farmers upon
confirmation of the farmers details and quantity procured.
(d): To provide remunerative price to the farmers for agricultural and horticultural commodities
(including onion) which are perishable and are not covered under the Minimum Support Price regime,
Government implements Market Intervention Scheme (MIS). The objective is to protect the farmers
from distress sale in the event of a bumper crop during the peak arrival, when the prices tend to fall
below cost of production.
New components of Price Differential Payment (PDP) with an option to make direct payment of
the price difference between the Market Intervention Price (MIP) and the selling price to the farmers
for the crops traded in the APMC mandis has been added. Additionally, reimbursement for
transportation and storage cost of TOP crops (Tomato, Onion and Potato) to central nodal agencies &
State designated agencies for storing and transporting them from producing state to consuming state
are allowed.The payment under MIS is made directly into the bank account of registered farmers.
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