The Centre has increased the onion procurement price for its price stabilisation buffer by 13%, raising it from Rs 1,875 per quintal to Rs 2,125 per quintal.
The revised price came into effect on July 4 and procurement will continue through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF).
The higher procurement price is expected to improve earnings for onion growers while strengthening the government’s efforts to maintain buffer stocks and stabilise prices during periods of supply disruption.
To strengthen farmer welfare, the Government has increased the onion procurement rate in Maharashtra from ₹1875 per quintal to ₹2125 per quintal under PSF for creating the National onion buffer stock. The new rate, which is around 13% higher than the previous rate, is effective… pic.twitter.com/o2kWKxotkt
— Consumer Affairs (@jagograhakjago) July 4, 2026
According to the Department of Agriculture and Farmers Welfare’s second advance estimates for 2025-26, onion production is expected to reach 307.37 lakh metric tonnes, almost unchanged from 307.67 lakh metric tonnes recorded in 2024-25. The government said the overall availability of onions is sufficient and there is no immediate concern over supplies, although normal seasonal price fluctuations may continue.
The Centre said onion stocks remain adequate in Maharashtra, Madhya Pradesh and Gujarat, 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 in Maharashtra.
The average retail onion price in Maharashtra is around Rs 18 per kg, while the all-India average stands at about Rs 31 per kg. Better quality onions are still available in storage and are expected to enter the market during the lean season, helping maintain supplies.
Officials said delayed monsoon rains and below-normal rainfall in some regions have encouraged speculative buying by a section of traders. However, there has been no significant increase in demand at current prices in major consumer markets. The government added that speculative activity has mainly been reported in production centres such as Nashik and parts of Madhya Pradesh, driven by expectations of future price increases rather than stronger consumer demand.
Onion exports also remain steady. Around 1.50 lakh metric tonnes of onions were exported in June 2026. However, traders expect exports to slow in the short term as fresh crops from Pakistan and China are available at competitive prices in key overseas markets, including Gulf countries, Sri Lanka and the Far East.
The government also noted that kharif onion sowing in Maharashtra’s Nashik region is running about 15 days behind schedule. In contrast, sowing progress in Karnataka’s Chitradurga and Challakere regions is estimated at around 60% of normal levels.
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