The government has increased the onion procurement price for the Price Stabilisation Buffer by 13%, from ₹1,875 to ₹2,125 per quintal, effective July 4, 2026. Procurement by NAFED and NCCF is currently underway.
The higher procurement price is aimed at giving better returns to onion farmers while strengthening the government’s buffer stock to help manage future price volatility.
India’s onion production for 2025-26 is estimated at 307.37 lakh metric tonnes (LMT), almost unchanged from 307.67 LMT in 2024-25. The government said there are no concerns over overall onion availability.
Current onion stocks in Maharashtra, Madhya Pradesh and Gujarat are adequate. Daily mandi arrivals remain above 50,000 metric tonnes, including over 30,000 metric tonnes from Maharashtra. The average mandi price is around ₹18/kg, while the all-India average retail price is ₹31/kg.
The government said delayed monsoon and below-normal rainfall in some areas have triggered speculative buying by some traders, although there is no major shortage or strong demand at current prices. Better-quality onion stocks are still available and are expected to be released during the lean season.
Onion exports remained normal at around 1.50 lakh metric tonnes in June 2026, though exports may slow temporarily due to cheaper supplies from Pakistan and China in key overseas markets. Kharif onion sowing is delayed by about 15 days in Nashik, while sowing in Karnataka’s Chitradurga–Challakere region has reached around 60% of normal.
India Hikes Onion Procurement Price 13% to Rs 2,125/Quintal
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