New Delhi: The Centre has increased the procurement price of onions by 13%, raising it from ₹1,875 per quintal to ₹2,125 per quintal.
The revised price came into effect from July 4, 2026, according to an official statement.
This is the fifth increase in the procurement price during the current onion procurement season.
Move aims to support farmers
The government purchases onions for its buffer stock under the Price Stabilisation Fund.
The latest increase is aimed at encouraging more farmers to sell onions to government agencies while ensuring they receive better prices for their produce.
Despite several price revisions, procurement has remained slow.
Since June 1, the government has purchased only around 2,000 tonnes of onions.
Prices revised several times
The procurement price has been increased repeatedly over the past few weeks.
It started at ₹12.70 per kg, then rose to ₹15.80 per kg on May 22, ₹16.50 per kg on June 13, ₹17.30 per kg on June 20, and later ₹18.75 per kg.
With the latest revision, the government will now pay ₹21.25 per kg, or ₹2,125 per quintal.
Onion supply remains comfortable
According to the Second Advance Estimates of the Department of Agriculture & Farmers’ Welfare, India’s onion production for 2025-26 is estimated at 307.37 lakh tonnes, almost unchanged from 307.67 lakh tonnes in the previous year.
The Ministry of Consumer Affairs said there is no immediate concern over onion availability.
Stocks in Maharashtra, Madhya Pradesh, and Gujarat remain sufficient, and there are no signs of shortages.
Daily arrivals in wholesale markets across the country continue to remain above 50,000 tonnes, with Maharashtra contributing more than 30,000 tonnes every day.
The average retail onion price across India is currently around ₹31 per kg.
Monsoon delay and exports under watch
The ministry said delayed monsoon rains and lower rainfall in some areas have encouraged speculative buying by traders, although consumer demand remains normal.
At the same time, onion exports remained steady at around 1.50 lakh tonnes in June.
However, exporters expect shipments to slow because cheaper onions from Pakistan and China are becoming more competitive in key overseas markets, including the Gulf, Sri Lanka, and the Far East.
Meanwhile, Kharif onion sowing has been delayed by about 15 days in Nashik, while sowing progress in parts of Karnataka is running at only around 60% of normal.
