New Delhi: The Central government has increased the onion procurement price for the Price Stabilisation Buffer by 13%, raising it from ₹1,875 to ₹2,125 per quintal with effect from July 4 to improve returns for farmers and strengthen buffer stock procurement.
The revised procurement price applies to onions purchased through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation (NCCF). Officials said the higher price will support farmers while ensuring adequate buffer stocks for market intervention when required.
According to the Second Advance Estimates of the Department of Agriculture and Farmers’ Welfare, onion production for 2025-26 is estimated at 307.37 lakh metric tonnes. The output remains almost unchanged from 307.67 lakh metric tonnes recorded in 2024-25. Therefore, the government said overall onion availability remains comfortable despite seasonal price movements.
Current onion stocks in Maharashtra, Madhya Pradesh and Gujarat remain adequate. Moreover, officials said there is no indication of any shortage in stored onions.
Onion procurement price hike supports buffer stock
Daily onion arrivals across the country continue to exceed 50,000 metric tonnes. Maharashtra alone accounts for more than 30,000 metric tonnes of daily arrivals. The average modal price in major producing markets currently stands at about ₹18 per kg, while the all-India average retail price is around ₹31 per kg.
The government said better-quality onions remain in storage and are expected to enter the market during the lean season. However, delayed monsoon rains and below-normal rainfall in some regions have encouraged speculative buying by a section of traders. Officials clarified that this activity reflects expectations of future price recovery rather than strong consumer demand.
Onion exports also remain stable. India exported around 1.50 lakh metric tonnes during June 2026. Nevertheless, traders expect exports to slow temporarily because Pakistan and China have supplied fresh onions at competitive prices in Gulf countries, Sri Lanka and Far East markets.
Meanwhile, kharif onion sowing has witnessed a delay of about 15 days in the Nashik region of Maharashtra. In contrast, sowing in Karnataka’s Chitradurga and Challakere belt has reached nearly 60% of the normal level.
The government said the revised procurement price forms part of its continued efforts to protect farmers’ incomes while maintaining adequate supplies and stabilising onion prices for consumers throughout the year.
To strengthen farmer welfare, the Government has increased the onion procurement rate in Maharashtra from ₹1875 per quintal to ₹2125 per quintal under PSF for creating the National onion buffer stock. The new rate, which is around 13% higher than the previous rate, is effective… pic.twitter.com/o2kWKxotkt
— Consumer Affairs (@jagograhakjago) July 4, 2026
