Government Raises Onion Procurement Price by 13%

Government Raises Onion Procurement Price by 13%

CNB WORLD TIMES

The Central Government has increased the procurement price of onions under the Price Stabilisation Fund (PSF) by 13%, raising it from ₹1,875 to ₹2,125 per quintal with effect from 4 July 2026. The revised rate aims to provide better returns to onion farmers while strengthening the National Onion Buffer Stock through procurement by NAFED and NCCF.

According to the Second Advance Estimates of the Department of Agriculture & Farmers' Welfare, onion production for 2025-26 is estimated at 307.37 lakh metric tonnes (LMT), almost the same as 307.67 LMT recorded in the previous year. The government stated that overall onion availability remains comfortable despite the usual seasonal rise in prices.

Current onion stocks in Maharashtra, Madhya Pradesh and Gujarat are adequate, with no signs of shortage. Daily arrivals in mandis across the country continue to exceed 50,000 metric tonnes, including more than 30,000 metric tonnes from Maharashtra. The average retail price of onions stands at ₹31 per kg.

The government noted that delayed monsoon and below-normal rainfall in some regions have led to speculative buying by a section of traders, although consumer demand remains stable. Better-quality onion stocks are expected to be released during the lean season to ensure steady supplies.

Onion exports also remain normal, with around 1.50 lakh metric tonnes exported in June 2026. However, exports may slow temporarily due to competitive supplies from Pakistan and China in key overseas markets.

While Kharif onion sowing in Nashik has been delayed by about 15 days, sowing in Karnataka's Chitradurga-Challakere belt has reached nearly 60% of the normal level.

The revised procurement price is expected to strengthen farmer welfare, support price stabilisation measures and help maintain adequate onion buffer stocks.