The Ministry of Consumer Affairs, Food & Public Distribution announced a 13% increase in the procurement price of onions for the Price Stabilisation Buffer, raising it from ₹1,875 per quintal to ₹2,125 per quintal effective from July 4, 2026. This revision aims to ensure better returns for onion farmers while supporting buffer procurement efforts conducted through NAFED and NCCF.
According to the Second Advance Estimates of the Department of Agriculture & Farmers' Welfare for 2025-26, onion production is estimated at 307.37 lakh metric tonnes (LMT), which is comparable to the previous year's production of 307.67 LMT. The government notes that overall onion availability is not a concern at this stage, though prices may increase in line with normal seasonal patterns.
Current stock levels in major producing states including Maharashtra, Madhya Pradesh and Gujarat are adequate with no indications of any shortage of stored onions. Daily mandi arrivals remain robust at over 50,000 metric tonnes at the all-India level, with Maharashtra specifically recording over 30,000 MT arrivals. The average modal prices in mandis are approximately ₹18 per kg, while the all-India average retail price stands at ₹31 per kg. Better-quality stocks continue to remain in storage and are expected to be released during the lean period.
The delay in monsoon arrival and lower-than-normal rainfall in some regions has triggered speculative buying by certain traders, though there is no significant demand at prevailing price levels in major consuming centers. Production centers such as Nashik and parts of Madhya Pradesh are witnessing speculative trading activity based on expectations of future market recovery rather than strong underlying demand.
Onion exports remain normal with approximately 1.50 LMT exported during June 2026. However, traders anticipate that export pace may slow temporarily due to fresh crops from Pakistan and China becoming available at competitive rates in key export destinations including Gulf countries, Sri Lanka and the Far East.
Sowing progress shows some regional variations with the Nashik region of Maharashtra reporting about a 15-day delay in Kharif sowing, while the Chitradurga and Challakere belt of Karnataka has achieved approximately 60% of normal sowing progress.