Centre raises onion procurement price to Rs 2,125 per quintal

The Centre has increased the onion procurement price by 13 per cent to Rs 2,125 per quintal to improve farmers' returns and strengthen buffer procurement. The government said onion production and stock levels remain adequate despite delayed Kharif sowing in some regions

New Delhi: The government on Saturday said it has increased the procurement price of onions by 13 per cent to Rs 2,125 per quintal from Rs 1,875 per quintal, effective from Saturday, to ensure better returns for onion farmers and strengthen buffer procurement.

The Consumer Affairs Ministry said that procurement of onions through NAFED and NCCF for the government’s Price Stabilisation Buffer is in progress. The revised procurement price will ensure better returns for onion farmers while supporting buffer procurement efforts, the ministry said.

---

Onion production is estimated at 307.37 lakh metric tonnes (LMT) for 2025-26, according to the second advance estimates of the Department of Agriculture & Farmers’ Welfare. This is comparable to the production of 307.67 LMT in 2024-25.

Going by the production estimates, the overall availability of onions is not a concern at this stage, though prices may be expected to inch up in line with normal seasonal trends, the ministry said.

“Current stock levels in Maharashtra, Madhya Pradesh and Gujarat are adequate. At present, there are no indications of any shortage of stored onions,” it added.

Moreover, daily mandi arrivals at the all-India level remain robust at over 50,000 metric tonnes (MT), while arrivals in Maharashtra are over 30,000 MT, with average modal prices of about Rs 18 per kg.

Better-quality stocks continue to remain in storage and are expected to be released during the lean period. The all-India average retail price is Rs 31 per kg.

Onion exports are also normal, with about 1.50 LMT exported during June. However, traders expect the pace of onion exports to slow down for a short period, primarily because fresh crops from Pakistan and China are available at competitive rates in key export destinations such as the Gulf countries, Sri Lanka and the Far East.

While the Nashik region of Maharashtra has reported about a 15-day delay in Kharif sowing, the sowing progress in the Chitradurga and Challakere belt of Karnataka is estimated to be around 60 per cent of normal, according to the government.

The delay in the monsoon’s arrival and lower-than-normal rainfall in some regions has led to speculative buying by a section of traders, though there is no significant demand at the prevailing price levels in major consuming centres.