New Delhi: The Centre has increased the procurement price of onions for the Price Stabilisation Buffer by 13%, raising it from ₹1,875 per quintal to ₹2,125 per quintal with effect from July 4, 2026, to ensure better returns for farmers and strengthen buffer stock procurement.
The Ministry of Consumer Affairs said procurement through NAFED and NCCF is currently underway and the revised price will support farmers while enhancing the government’s market intervention mechanism.
According to the Second Advance Estimates for 2025-26, onion production is estimated at 307.37 lakh metric tonnes (LMT), almost unchanged from 307.67 LMT recorded in 2024-25, indicating that overall availability remains adequate.
The government said onion stocks in Maharashtra, Madhya Pradesh and Gujarat are sufficient, with no signs of shortages. Daily arrivals in mandis continue to exceed 50,000 metric tonnes, including over 30,000 metric tonnes from Maharashtra, where the average modal price is around ₹18 per kg. The all-India average retail price currently stands at ₹31 per kg.
The ministry attributed recent price firmness to speculative buying following delayed monsoon rains in some regions rather than any actual supply shortage. Better-quality stocks remain available and are expected to be released during the lean season.
Onion exports remained steady at around 1.5 lakh metric tonnes in June, although shipments may slow temporarily due to competitive supplies from Pakistan and China in key overseas markets.
The government added that while Kharif onion sowing has been delayed by about 15 days in the Nashik region of Maharashtra, sowing in Karnataka’s Chitradurga and Challakere belt has reached around 60% of normal levels.
