Centre hikes onion procurement price by 13%

Published 4 July 2026 · india

The Union Consumer Affairs Department has increased the procurement price of onions by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer, in a

The Union Consumer Affairs Department has increased the procurement price of onions by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer, in a move aimed at boosting procurement and ensuring better prices for farmers. The revised rate comes into effect from Saturday (July 4, 2026), a government release said. The procurement price has been raised from ₹1,875 per quintal. The Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the Cooperative Consumers’ Federation of India (NCCF) are procuring onions from various States. “The revised price will ensure better returns for onion farmers while supporting buffer procurement efforts,” the Government release said.

The move comes amid rising retail prices of onions over the last month, even as farmers in various States complained that they were not getting remunerative prices in spite of higher input costs. In 2025-26, onion production is estimated at 307.37 lakh metric tonnes (LMT), according to the Second Advance Estimates of the Union Agriculture Ministry. In 2024-25, the production was 307.67 LMT. “Going by the production estimates, the overall availability of onions is not a concern at this stage, though prices may be expected to inch up in line with the normal price seasonality.

Current stock levels in Maharashtra, Madhya Pradesh and Gujarat are adequate. At present, there are no indications of any shortage of stored onions,” the Government said. The government expects daily arrivals in markets at the all-India level to remain over 50,000 metric tonnes (MT). It said arrivals in Maharashtra are over 30,000 MT, with average modal prices of about ₹18 per kg. “Better-quality stocks continue to remain in storage and are expected to be released during the lean period. The all-India average retail price is ₹31 per kg,” it said. “The delay in monsoon arrival and lower-than-normal rainfall in some regions have led to speculative buying by a section of traders, though there is no significant demand at the prevailing price levels in major consuming centres.

Despite the sentiment in consumer markets, production centres such as Nashik and parts of Madhya Pradesh are witnessing a tendency for speculative trading activity, largely on expectations of a future market recovery rather than on strong underlying demand,” the release added.