Buffer stock procurement rate increased by 13% to ₹2,125 per quintal from July 4, aiming to support farmers and strengthen onion reserves.
Key Highlights
- Government increased onion procurement price by 13%.
- New procurement price is ₹2,125 per quintal.
- Revised rates became effective from July 4, 2026.
- This is the fifth procurement price hike this season.
- Move aims to improve farmers’ income and boost buffer stock procurement.
- Maharashtra, Madhya Pradesh and Gujarat farmers are expected to benefit the most.
- Daily onion arrivals in Indian mandis exceed 50,000 tonnes.
- Government says sufficient onion stocks are available to stabilize prices if needed.
New Delhi: The Central Government has increased the procurement price of onions for its buffer stock programme by 13%, raising the rate from ₹1,875 per quintal to ₹2,125 per quintal. The revised procurement price has come into effect from July 4, 2026, and is aimed at providing better returns to farmers while strengthening the country’s onion buffer stock.
This is the fifth increase in the procurement price during the current season. Procurement had initially started at ₹12.70 per kilogram, which has now been increased to ₹21.25 per kilogram. Despite multiple revisions, only around 2,000 tonnes of onions have been procured so far for the government’s buffer stock programme.
The revised price is expected to benefit onion growers, particularly in Maharashtra, Madhya Pradesh, and Gujarat, where onion production is among the highest in the country. Officials believe the higher procurement rate will encourage more farmers to sell their produce under the government procurement programme.
According to the Ministry of Consumer Affairs, onion availability in the country remains comfortable, with more than 50,000 tonnes arriving in wholesale markets every day. Maharashtra alone contributes over 30,000 tonnes of daily arrivals. The average wholesale onion price in the state is around ₹18 per kilogram, while the national average retail price stands at approximately ₹31 per kilogram.
The government also stated that sufficient quality onion stocks are available in storage and will be released into the market if required to control prices. Although delayed monsoon conditions in some regions have led to speculative trading, officials said consumer demand remains stable across major markets.
India’s onion production for 2025–26 is estimated at 307.37 lakh tonnes, nearly matching last year’s output. The government expects the higher procurement price to improve farmer participation while maintaining adequate reserves to stabilize market prices whenever necessary.
