Onion Procurement Price 2026: In a move aimed at supporting onion growers and strengthening government procurement operations, the Central Government has once again increased the procurement price for onions purchased under its buffer stock programme. Effective July 4, 2026, farmers supplying onions to government agencies will now receive ₹2,125 per quintal, up from the earlier rate of ₹1,875 per quintal.
The latest revision represents a 13% increase and marks the fifth procurement price hike announced during the current procurement season. Officials say the decision is intended to encourage greater farmer participation in buffer stock procurement while ensuring stable onion supplies across the country.
The government procures onions under its Price Stabilisation Fund (PSF) to create buffer stocks that can be released into the market whenever supplies tighten or prices rise sharply. Maintaining these reserves helps moderate price volatility and improve food security.
According to the latest announcement, all eligible onion purchases made by government procurement agencies from July 4 onward will be carried out at the revised rate of ₹2,125 per quintal.
The higher procurement price is expected to improve returns for onion farmers and make government procurement more attractive during the ongoing marketing season.
The latest increase comes after procurement under the buffer stock programme progressed more slowly than expected.
Although procurement began on June 1, official data indicates that government agencies have so far purchased only around 2,000 tonnes of onions for the 2026 buffer stock. Authorities had anticipated higher participation from farmers despite several earlier price revisions.
To encourage additional sales to government agencies, the procurement price has now been increased for the fifth time this season.
The onion procurement price has been revised upward several times over the past few weeks.
At the beginning of the procurement season, the purchase price stood at ₹12.70 per kilogram. It was subsequently increased to:
₹15.80 per kg on May 22
₹16.50 per kg on June 13
₹17.30 per kg on June 20
₹18.75 per kg during the previous revision
₹21.25 per kg (₹2,125 per quintal) from July 4
These repeated revisions reflect the government's effort to improve procurement volumes while providing better price support to onion growers.
Despite the slower pace of procurement, officials have stated that there is no immediate concern regarding onion availability across the country.
According to the Second Advance Estimates for 2025-26 released by the Department of Agriculture and Farmers Welfare, India's onion production is estimated at 30.737 million tonnes (307.37 lakh tonnes).
This estimate is broadly in line with the previous year's production of 30.767 million tonnes (307.67 lakh tonnes), suggesting that overall output remains stable.
The Ministry of Consumer Affairs has said that current onion supplies are sufficient to meet domestic demand.
However, officials noted that retail prices could witness some seasonal fluctuations in the coming weeks, which is common during certain phases of the agricultural marketing cycle. At present, there are no indications of any significant supply shortage.
The government also expects the availability of stored onions to help maintain market stability if seasonal arrivals temporarily decline.
Government officials have reported that onion stocks remain comfortable in key producing states, including Maharashtra, Madhya Pradesh, and Gujarat.
There are currently no signs of storage shortages in these regions, which account for a significant share of India's onion production.
Wholesale markets across the country are receiving more than 50,000 tonnes of onions each day, with over 30,000 tonnes arriving from Maharashtra alone. The average wholesale model price in Maharashtra's mandis is currently around ₹18 per kilogram.
According to government data, the average retail price of onions across India is presently around ₹31 per kilogram.
Officials have also indicated that a substantial quantity of good-quality onions remains stored in warehouses and cold storage facilities. These stocks can be released during periods of lower market arrivals, helping maintain supply and reduce excessive price fluctuations.
The latest procurement price increase is expected to provide better returns to onion farmers participating in the government's buffer stock programme. By raising procurement prices repeatedly during the season, the government aims to encourage larger procurement volumes while maintaining adequate reserves for future market intervention.
For consumers, authorities maintain that current production levels and available stocks should help keep supplies stable, although normal seasonal price movements may still occur in retail markets.
Disclaimer: This article is based on official government announcements and publicly available information. Procurement prices, production estimates, and market conditions may change based on future policy decisions and agricultural developments.
