The adjusted price will take effect from July 4, 2026, according to an official announcement.
This represents the fifth increase in the procurement price this season, as the government’s onion purchases for the 2026 buffer stock under the Price Stabilization Fund have experienced a sluggish start.
Only approximately 2,000 tonnes have been procured since June 1, despite multiple increases in the purchase price. The procurement price has rapidly escalated since the season began – from ₹12.70/kg to ₹15.80/kg on May 22, then to ₹16.50/kg on June 13, ₹17.30/kg on June 20, and finally to ₹18.75/kg, culminating in the latest rise to ₹21.25/kg (₹2,125/quintal).
As per the Second Advance Estimates from the Department of Agriculture & Farmers’ Welfare for 2025-26, onion production is estimated at 307.37 lakh tonnes, closely aligning with 307.67 lakh tonnes for 2024-25.
The consumer affairs ministry indicated that overall availability is not currently a concern, although prices may rise slightly in accordance with typical seasonal trends.
Stock levels in Maharashtra, Madhya Pradesh, and Gujarat are deemed sufficient, with no signs of shortages in stored onions.
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Daily mandi arrivals across India remained strong at over 50,000 tonnes, with Maharashtra contributing more than 30,000 tonnes at an average modal price of approximately ₹18/kg.
The all-India average retail price is currently ₹31/kg. Higher-quality stocks are still being kept in storage and are anticipated to be released during the lean period.
A delayed monsoon and below-average rainfall in certain areas have sparked speculative buying among some traders, despite actual demand in key consuming regions remaining subdued at present price levels.
Production centers like Nashik and parts of Madhya Pradesh are witnessing speculative trading, primarily driven by expectations of price recovery rather than genuine demand.
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Onion exports remained stable in June, with about 1.50 lakh tonnes exported during the month. However, traders anticipate a decrease in export momentum soon, as cheaper fresh crops from Pakistan and China are undercutting Indian onions in significant markets like the Gulf, Sri Lanka, and the Far East.
In the meantime, Kharif sowing has been delayed by approximately 15 days in Maharashtra’s Nashik region, while progress in Karnataka’s Chitradurga and Challakere areas is at around 60% of the normal pace.
