The Government of India has increased the procurement price of onions for buffer stock purposes by 13 per cent, raising the rate from ₹1,875 per quintal to ₹2,125 per quintal with effect from July 4, 2026. The decision marks the fifth upward revision this season under the Price Stabilisation Fund, as onion procurement for the 2026 buffer stock has reportedly begun at a slower-than-expected pace.

According to an official statement, the revised procurement price—equivalent to ₹21.25 per kilogram—aims to encourage higher farmer participation and strengthen buffer stock accumulation. Despite multiple price hikes in recent weeks, only around 2,000 tonnes of onions have been procured since June 1, indicating limited supply response to earlier incentives.

The procurement rate has been revised in quick succession since the start of the season, rising from ₹12.70 per kilogram on May 22 to ₹15.80 on June 13, ₹16.50 on June 20, ₹17.30 later in the month, and ₹18.75 before the latest increase. The government noted that onion production for 2025–26 is estimated at 307.37 lakh tonnes, broadly in line with the previous year’s output of 307.67 lakh tonnes, suggesting stable overall availability.

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The Ministry of Consumer Affairs stated that there is currently no supply shortage, though prices may see normal seasonal movement. It added that stock positions in major producing states such as Maharashtra, Madhya Pradesh, and Gujarat remain comfortable. Daily mandi arrivals across the country have stayed strong at over 50,000 tonnes, with Maharashtra contributing more than 30,000 tonnes at an average modal price of around ₹18 per kilogram.

Retail onion prices currently average ₹31 per kilogram nationwide, while better-quality stocks are reportedly being held in storage for release during the lean season. Officials also noted that delayed monsoon conditions and uneven rainfall in some regions have contributed to speculative trading activity, particularly in key production hubs such as Nashik and parts of Madhya Pradesh.

Meanwhile, onion exports in June stood at approximately 1.50 lakh tonnes, although traders expect shipments to slow in the coming months due to increased competition from cheaper supplies in Pakistan and China. The sowing of Kharif onion crops has also been delayed by around 15 days in parts of Maharashtra, while progress in Karnataka’s Chitradurga and Challakere regions has reached about 60 per cent of normal levels, reflecting uneven agricultural conditions across key growing areas.

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