Centre raises onion procurement price by 13% to ₹2,125 per quintal from July 4 to improve farmer earnings and strengthen the Price Stabilisation Buffer.
Key Highlights
- Onion procurement price increased by 13%, from ₹1,875 to ₹2,125 per quintal.
- Revised procurement price is effective from July 4, 2026.
- Procurement for the Price Stabilisation Buffer is being carried out by NAFED and NCCF.
- Government says onion production remains stable at 307.37 lakh metric tonnes for 2025–26.
- Daily onion arrivals across India continue above 50,000 MT, with Maharashtra contributing over 30,000 MT.
- Average retail onion price currently stands at ₹31 per kg.
- No shortage of onion stocks reported in Maharashtra, Madhya Pradesh and Gujarat.
- Government expects better returns for farmers while ensuring sufficient buffer stocks for price stability.
The Central Government has announced a 13% increase in the procurement price of onions for the Price Stabilisation Buffer, raising the rate from ₹1,875 per quintal to ₹2,125 per quintal. The revised procurement price came into effect on July 4, 2026, with the objective of ensuring better returns for onion farmers while strengthening the country’s buffer stock.
The procurement is currently being undertaken through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF). The higher procurement price is expected to encourage greater farmer participation in the government’s buffer procurement programme.
According to the Second Advance Estimates released by the Department of Agriculture & Farmers’ Welfare, India’s onion production for 2025–26 is estimated at 307.37 lakh metric tonnes, almost unchanged from 307.67 lakh metric tonnes recorded in the previous year. The government stated that overall onion availability remains comfortable despite seasonal price fluctuations.
Officials confirmed that onion stocks in major producing states including Maharashtra, Madhya Pradesh and Gujarat are sufficient, with no signs of supply shortages. Daily arrivals across wholesale markets continue to exceed 50,000 metric tonnes, while Maharashtra alone contributes more than 30,000 metric tonnes each day. The average wholesale price in Maharashtra is around ₹18 per kilogram, whereas the all-India average retail price is approximately ₹31 per kilogram.
The government noted that although delayed monsoon conditions and below-normal rainfall in certain regions have encouraged speculative buying by some traders, demand in major consumer markets remains stable. Trading activity in production hubs such as Nashik and parts of Madhya Pradesh is currently driven more by expectations of future price recovery than by actual consumer demand.
On the export front, onion shipments remain steady, with approximately 1.50 lakh metric tonnes exported during June 2026. However, traders expect exports to slow temporarily due to increased competition from fresh onion supplies originating from Pakistan and China, particularly in key overseas markets including the Gulf region, Sri Lanka and the Far East.
The government also reported that Kharif onion sowing has been delayed by around 15 days in Maharashtra’s Nashik region due to the late arrival of the monsoon. Meanwhile, sowing progress in Karnataka’s Chitradurga and Challakere regions has reached nearly 60% of the normal level.
The revised procurement price is expected to strengthen buffer stock creation, support farmer incomes and help the government manage onion prices more effectively during periods of seasonal supply fluctuations.
