Centre Hikes Onion Procurement Price by 13%
Higher Buffer Procurement Price Aims to Boost Farmer Returns as Government Monitors Supply and Prices
GG News Bureau
New Delhi, 4th July: The Centre on Saturday increased the procurement price of onions for the Price Stabilisation Buffer by 13 per cent to ₹2,125 per quintal from ₹1,875 per quintal, a move aimed at improving returns for farmers while strengthening buffer stock procurement.
The revised procurement price came into effect on July 4. Procurement is being carried out through the National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumers’ Federation of India under the government’s Price Stabilisation Buffer scheme.
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 tonnes, nearly unchanged from 307.67 lakh metric tonnes in the previous year, indicating adequate overall availability despite seasonal price fluctuations.
The government said onion stocks in major producing states, including Maharashtra, Madhya Pradesh and Gujarat, remain adequate, with no indication of any shortage in stored onions.
Daily arrivals in wholesale markets across the country continue to exceed 50,000 metric tonnes, including more than 30,000 metric tonnes from Maharashtra. The average modal wholesale price is around ₹18 per kg, while the all-India average retail price stands at ₹31 per kg.
The government said delayed monsoon and below-normal rainfall in some regions have triggered speculative buying by a section of traders, particularly in Nashik and parts of Madhya Pradesh. However, it noted that the trend is driven by expectations of future price recovery rather than any significant increase in consumer demand.
Onion exports remain stable, with around 1.50 lakh metric tonnes exported during June 2026. However, export momentum may slow temporarily due to the availability of competitively priced fresh onions from Pakistan and China in key overseas markets, including Gulf countries, Sri Lanka and the Far East.
The government also noted that Kharif onion sowing in the Nashik region has been delayed by around 15 days, while sowing in Karnataka’s Chitradurga and Challakere regions has reached about 60 per cent of the normal level.
