The Centre has raised the onion procurement price for the Price Stabilisation Buffer by 13 per cent to Rs 2,125 per quintal from Rs 1,875 per quintal, effective 4 July 2026, to improve returns for farmers while strengthening buffer stock procurement.
The revised price will apply to procurement undertaken by the National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumers' Federation of India. The government said the higher procurement price would ensure better remuneration for onion growers while supporting efforts to maintain adequate buffer stocks for market intervention during periods of price volatility.
According to the Department of Agriculture and Farmers' Welfare's Second Advance Estimates for 2025–26, onion production is estimated at 307.37 lakh metric tonne, almost unchanged from 307.67 lakh metric tonne a year earlier. The government said overall onion availability remains comfortable despite the onset of the lean season.
The Centre said onion stocks in Maharashtra, Madhya Pradesh and Gujarat remain adequate, with daily mandi arrivals exceeding 50,000 metric tonne across India. The average retail onion price is Rs 31 per kg, while wholesale modal prices are around Rs 18 per kg.
The government, however, flagged speculative buying in parts of Nashik and Madhya Pradesh following delayed monsoon rains in some regions. It maintained that there is no indication of a supply shortage or unusually strong consumer demand.
India exported about 1.50 lakh metric tonne of onions in June 2026. However, exports could moderate in the near term as fresh supplies from Pakistan and China have become more competitive in key overseas markets, including the Gulf countries and Sri Lanka.
The government also said kharif onion sowing in the Nashik region has been delayed by around 15 days, while sowing in Karnataka's Chitradurga and Challakere belt has reached about 60 per cent of normal levels. |
