Govt Raises Onion Procurement Price by 13% to ₹2,125 per Quintal
The Government of India has announced a 13% increase in the procurement price of onions for the Price Stabilisation Buffer, revising it from ₹1,875 to ₹2,125 per quintal. The revised rate, effective July 4, 2026, is aimed at ensuring better returns for farmers while strengthening buffer procurement operations through NAFED and NCCF.
According to the Second Advance Estimates of the Department of Agriculture & Farmers’ Welfare, onion production for 2025‑26 is pegged at 307.37 lakh metric tonnes (LMT), nearly identical to last year’s 307.67 LMT. Officials have clarified that overall availability is not a concern, though prices may rise in line with seasonal trends.
Current stock levels in Maharashtra, Madhya Pradesh, and Gujarat remain adequate, with daily mandi arrivals exceeding 50,000 MT nationwide. Retail prices average ₹31 per kg, while modal mandi prices hover around ₹18 per kg.
Despite delayed monsoon and lower rainfall in some regions, speculative trading has been observed in Nashik and parts of Madhya Pradesh. However, demand in major consuming centres remains subdued.
Exports continue at a normal pace, with 1.50 LMT shipped in June 2026, though traders anticipate a short‑term slowdown due to competitive supplies from Pakistan and China. Meanwhile, sowing progress in Karnataka’s Chitradurga and Challakere belt stands at around 60% of normal, while Nashik has reported a 15‑day delay in Kharif sowing.
Officials emphasized that the procurement price hike will stabilize markets, prevent distress sales, and support farmer livelihoods.
