New Delhi, July 4 (IANS): The Centre has increased the procurement price of onions by 13 per cent to Rs 2,125 per quintal from Rs 1,875 per quintal with effect from Saturday, aiming to provide better returns to farmers and strengthen buffer stock procurement. The Consumer Affairs Ministry said procurement through NAFED and NCCF for the government’s Price Stabilisation Buffer is currently underway, adding that the revised price will benefit onion growers while supporting buffer-building efforts. According to the Department of Agriculture and Farmers’ Welfare’s second advance estimates, onion production for 2025-26 is projected at 307.37 lakh metric tonnes (LMT), almost unchanged from 307.67 LMT in 2024-25. The ministry said overall onion availability remains adequate and there are no immediate concerns over supply, although prices may rise in line with normal seasonal trends. It also noted that stock levels in Maharashtra, Madhya Pradesh and Gujarat are sufficient, with no indication of any shortage of stored onions.
The ministry said daily mandi arrivals across the country remain robust at over 50,000 metric tonnes (MT), including more than 30,000 MT in Maharashtra, where the average modal price is around Rs 18 per kg. Better-quality stocks are expected to be released during the lean season, while the all-India average retail onion price currently stands at Rs 31 per kg. Onion exports also remained steady, with around 1.50 LMT shipped during June, although traders expect export momentum to slow temporarily due to competitive supplies from Pakistan and China in key overseas markets. The government further noted that Kharif onion sowing has been delayed by about 15 days in Maharashtra’s Nashik region, while sowing in Karnataka’s Chitradurga and Challakere belt has reached around 60 per cent of normal levels. It attributed recent speculative buying by some traders to delayed monsoon arrival and below-normal rainfall in certain regions, while maintaining that demand remains subdued at prevailing prices in major consuming centres.