The Government increased the onion procurement price under the Price Stabilisation Buffer by 13%, raising it from Rs 1,875 to Rs 2,125 per quintal effective July 4, 2026.
Procurement through NAFED and NCCF is underway to ensure better returns for farmers and strengthen the national buffer stock.
According to the Department of Agriculture & Farmers’ Welfare, onion production for 2025–26 is estimated at 307.37 lakh metric tonnes, nearly identical to last year’s 307.67 LMT. Officials confirmed that overall availability remains stable, though seasonal price increases are expected.
Current stock levels in Maharashtra, Madhya Pradesh, and Gujarat are adequate. Daily mandi arrivals exceed 50,000 metric tonnes nationwide, with Maharashtra contributing over 30,000 MT. Retail prices average Rs 31 per kg, while modal mandi prices hover around Rs 18 per kg.
Authorities noted speculative buying in some regions due to delayed monsoon and lower rainfall, though demand remains steady. Traders in Nashik and parts of Madhya Pradesh expect future recovery, driving speculative activity.
Exports continue at normal levels, with 1.50 LMT shipped in June 2026. However, competition from fresh crops in Pakistan and China may temporarily slow exports to Gulf countries, Sri Lanka, and the Far East.
In Maharashtra, Kharif sowing has been delayed by about 15 days, while Karnataka’s Chitradurga and Challakere regions reported 60% of normal sowing progress.
Consumer Affairs officials emphasised that the revised procurement price under the Price Stabilisation Fund will support farmers and stabilise onion supplies during lean periods.
