Government Raises Onion Procurement Price by 13% to Support Farmers, Ensure Stable Supply

The government has increased the procurement price of onions by 13% for its buffer stock programme in a move aimed at ensuring farmers receive better returns while maintaining adequate supplies and keeping retail prices under control.

Under the revised rates, the government will now procure onions from farmers at ₹2,125 per quintal, up from the earlier ₹1,875 per quintal. The new procurement price came into effect on July 4, 2026.

The decision is intended to protect farmers from price fluctuations while ensuring consumers are not affected by sharp increases in onion prices. The procurement is being carried out as part of the government’s buffer stock strategy to stabilize the market during periods of supply shortages.

Notably, this is the fifth increase in the onion procurement price during the current procurement season. Since June 1, the government has procured around 2,000 tonnes of onions for the buffer stock.

At the beginning of the season, the procurement price was ₹12.70 per kg. It was subsequently revised to ₹15.80 per kg on May 22, ₹16.50 per kg on June 13, ₹17.30 per kg on June 20, and has now been increased to ₹21.25 per kg from July 4.

According to estimates by the Ministry of Agriculture and Farmers’ Welfare, India’s onion production for the 2025–26 crop year is expected to reach 30.737 million tonnes, almost unchanged from 30.767 million tonnes recorded in the previous year.

The Ministry of Consumer Affairs has stated that there is currently no shortage of onions in the country. Adequate stocks are available in major producing states such as Maharashtra, Madhya Pradesh, and Gujarat, while mandi arrivals continue to remain strong.

Officials said around 50,000 tonnes of onions are arriving in wholesale markets across the country every day. The average wholesale price currently stands at ₹15 per kg, while onions are being sold at an average retail price of ₹31 per kg.

The government expects the higher procurement price to encourage farmers to sell their produce at remunerative rates while helping maintain sufficient buffer stocks to prevent future price spikes and ensure a steady supply of onions in the domestic market.