New Delhi: The central government announced a 13 per cent increase in the procurement price of onions for its national buffer stock on Saturday, raising the rate from 1,875 rupees per quintal to 2,125 rupees per quintal. The revised pricing structure, which translates to 21.25 rupees per kilogram, takes effect immediately on July 4, 2026. This administrative intervention represents the fifth successive upward revision during the current marketing season, reflecting the government’s efforts to accelerate state buying under the Price Stabilisation Fund, which has seen a slow start with only 2,000 tonnes procured since June 1.
The procurement price has climbed steadily since the opening of the season to incentivize farmers to sell to state agencies rather than open markets. Initial rates commenced at 12.70 rupees per kilogram, before being adjusted to 15.80 rupees on May 22, followed by increases to 16.50 rupees on June 13, 17.30 rupees on June 20, and 18.75 rupees prior to the latest notification. According to the Second Advance Estimates released by the Department of Agriculture and Farmers’ Welfare for the 2025-26 crop cycle, national onion production is projected at 307.37 lakh tonnes, remaining stable and broadly on par with the 307.67 lakh tonnes recorded during the 2024-25 fiscal year.
The Ministry of Consumer Affairs maintained that overall domestic availability remains secure, attributing recent retail price movements to normal seasonal variations. Aggregated storage reserves in primary producing states, including Maharashtra, Madhya Pradesh, and Gujarat, remain robust, with daily wholesale market arrivals maintaining a steady clip of over 50,000 tonnes nationwide. Out of this volume, Maharashtra alone contributes more than 30,000 tonnes daily, commands an average modal wholesale price of 18 rupees per kilogram, while the weighted all-India retail average holds steady at 31 rupees per kilogram.
Despite steady supply lines, a delayed monsoon arrival coupled with below-normal precipitation across specific cultivation belts has triggered speculative trading in key hubs like Nashik and parts of Madhya Pradesh, as traders hold back higher-quality stocks in anticipation of lean-period price recoveries. On the trade front, India exported roughly 1.50 lakh tonnes of onions in June, though outbound shipping momentum is projected to face headwinds in the near term due to competitive pricing from cheaper fresh harvests originating out of Pakistan and China in traditional destination markets across the Gulf, Sri Lanka, and East Asia. Concurrently, Kharif sowing operations have registered a 15-day delay in Maharashtra’s Nashik division, while acreage progress in Karnataka’s Chitradurga and Challakere belt is currently tracking at 60 per cent of historical averages.
