The Centre on Saturday increased the onion procurement price by 13 per cent to ₹2,125 per quintal from ₹1,875 per quintal, effective immediately. The revised procurement price is expected to provide better returns to onion farmers while strengthening the government’s Price Stabilisation Buffer to manage future price volatility.
Centre Hikes Onion Procurement Price by 13%
The Consumer Affairs Ministry said procurement of onions through NAFED and NCCF for the government’s Price Stabilisation Buffer is currently underway.
The revised procurement price will ensure better returns for onion farmers while supporting buffer procurement efforts, the ministry said. The move is also aimed at maintaining adequate buffer stocks to stabilise retail onion prices during periods of seasonal supply fluctuations.
Onion Production and Supply Remain Stable
Onion production is estimated at 307.37 lakh metric tonnes (LMT) for 2025-26, according to the second advance estimates of the Department of Agriculture & Farmers’ Welfare. This is comparable with the production of 307.67 LMT in 2024-25.
According to the government, the overall availability of onions is not a concern at this stage, although prices may rise gradually in line with normal seasonal trends.
“Current stock levels in Maharashtra, Madhya Pradesh and Gujarat are adequate. At present, there are no indications of any shortage of stored onions,” the ministry added.
Daily mandi arrivals across India remain robust at more than 50,000 metric tonnes (MT), while arrivals in Maharashtra exceed 30,000 MT, with average modal prices of around ₹18 per kg.
Better-quality onion stocks remain in storage and are expected to be released during the lean season. The all-India average retail onion price currently stands at ₹31 per kg. Healthy production estimates and adequate stock levels are expected to help prevent any major supply disruption.
Exports Continue as Monsoon Delay Triggers Market Watch
Onion exports remained normal, with around 1.50 lakh metric tonnes (LMT) exported during June.
However, traders expect export momentum to slow temporarily because fresh onion crops from Pakistan and China are available at competitive prices in key export markets such as the Gulf countries, Sri Lanka, and the Far East.
Meanwhile, the Nashik region of Maharashtra has reported a 15-day delay in Kharif sowing, while sowing progress in Karnataka’s Chitradurga and Challakere belt is estimated at around 60 per cent of normal.
The delay in monsoon arrival and below-normal rainfall in some regions has led to speculative buying by some traders, although there is no significant demand at prevailing price levels in major consuming centres. The government said there is currently no indication of any immediate onion shortage despite weather-related concerns.
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