New onion purchase price to stabilize market and strengthen buffer stock

The Government of India has announced a fresh procurement price of Rs 2,125 per quintal for onions, marking a 13 percent rise over the previous Rs 1,875 level. This adjustment, effective from Saturday, is intended to smooth price volatility and reinforce the country’s strategic buffer stock.

The Ministry of Consumer Affairs, Food and Public Distribution clarified that the increased rate will be executed through the regular procurement channels of NAFED and NCCF. By offering a better price to growers, the policy seeks to boost farmer earnings while ensuring that sufficient quantities are available for emergency distribution.

Official estimates forecast onion production for the 2025‑26 season at 307.37 lakh metric tonnes, nearly identical to the 307.67 lakh tonnes recorded in 2024‑25. The department assures that the overall supply situation is stable, although typical seasonal trends could still lead to short‑term price spikes.

State reports highlight robust stocks in Maharashtra, Madhya Pradesh and Gujarat. Nationwide, daily onion arrivals now exceed 50,000 metric tonnes, with Maharashtra alone contributing over 30,000 metric tonnes at an average model price of about Rs 18 per kilogram.

The average retail price across the country stands at Rs 31 per kilogram. June export figures show approximately 1.5 lakh metric tonnes shipped abroad, but traders anticipate a possible slowdown as competing supplies from Pakistan, China and other Asian markets become available.