The government announced a 13% increase in the procurement price of onions to Rs 2,125 per quintal from Rs 1,875 per quintal, effective immediately. This move aims to provide better returns to onion farmers and strengthen buffer procurement. The Consumer Affairs Ministry highlighted that the procurement of onions for the government’s Price Stabilisation Buffer is currently underway.
The revised procurement price is expected to benefit onion farmers by ensuring improved returns and supporting buffer procurement initiatives, according to the ministry. The Department of Agriculture & Farmers’ Welfare’s second advance estimates project onion production at 307.37 lakh metric tonnes for 2025-26, similar to the previous year’s production of 307.67 LMT.
The ministry stated that despite the production estimates indicating sufficient onion availability, prices might rise in line with normal seasonal trends. Notably, Maharashtra, Madhya Pradesh, and Gujarat currently have ample onion stocks, with no signs of storage shortages. Market arrivals across India exceed 50,000 metric tonnes daily, with Maharashtra alone contributing over 30,000 MT at an average modal price of around Rs 18 per kg.
Quality onion stocks are stored and anticipated to be released during the lean season. The average retail price of onions nationwide stands at Rs 31 per kg. While onion exports remain steady, traders anticipate a temporary slowdown due to competitive rates from fresh crops in Pakistan and China in key export markets like the Gulf countries, Sri Lanka, and the Far East.
Although the Nashik region in Maharashtra reports a 15-day delay in Kharif sowing, Karnataka’s Chitradurga and Challakere belt have achieved around 60% of normal sowing progress. Speculative buying by some traders, prompted by delayed monsoons and below-average rainfall in certain regions, has not translated into significant demand at prevailing price levels in major consumption centers.
