Onion Price: Government’s big gift to farmers! 13% jump in onion purchase price, now Rs 2125 per quintal

Government Announces 13 Percent Onion Price Hike: The Central Government has provided a huge economic relief to the farmers across the country. The government has announced a huge and historic increase of 13 percent in the purchase price of onion for buffer stock. After this big and important government decision, now all the farmers will be paid Rs 2,125 per quintal for onion. According to the official statement issued by the government, this new and increased purchase rate has been fully implemented across the country from July 4, 2026.

The main objective of this important step of the government is to increase government procurement very rapidly and to provide better profits to the farmers than before. Earlier, the government was purchasing onions from farmers at the rate of Rs 1,875 per quintal. Despite the continuous price increase, only 2,000 tonnes of onion has been procured by the government since June 1. To speed up this very slow government procurement, the government has taken this huge step under the Price Stabilization Fund.

Prices increased for the fifth time

This is the fifth time in the current session that the Central Government has made such a huge increase in the government procurement price of onion. At the beginning of the session, this government procurement price was only Rs 12.70 per kg, which has been gradually increased continuously as per the need. On May 22, this price was increased to Rs 15.80, on June 13 to Rs 16.50 and on June 20 to Rs 17.30 per kg. Finally it has been increased from Rs 18.75 to a high of Rs 21.25 per kg i.e. Rs 2,125 per quintal.

Production and market conditions

According to the second advance estimates for 2025-26 of the Department of Agriculture and Farmers Welfare, the total production of onion in the country is estimated to be 307.37 lakh tonnes. This huge figure appears to be almost exactly equal to the huge production of 307.67 lakh tonnes in last year 2024-25. The Consumer Affairs Ministry has clarified that at present the total availability of onion across the country is not a matter of any concern. However, due to normal seasonal fluctuations and rains, prices in the retail market may go up slightly in the coming times.

Onion arrival in markets

Adequate and very good stocks of onion are still fully available in the big states of the country like Maharashtra, Madhya Pradesh and Gujarat. If seen at the all-India level, more than 50,000 tonnes of onion is arriving in huge quantities in the mandis every day. In this, huge arrival of 30,000 tonnes of onion is continuously coming from the local mandis of Maharashtra state alone. Its average model price in these mandis is Rs 18 per kg while the all India average retail price across the country is Rs 31 per kg.

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New crisis looming on exports

In the month of June, about 1.50 lakh tonnes of onion was exported from India to other countries very normally. But in the coming days, traders are feeling that the global pace of export of Indian onion will be very slow. The main reason for this is that fresh crops coming from Pakistan and China are getting much cheaper in the international market. These extremely cheap crops are giving very tough and serious competition to Indian onion in important markets like Gulf countries, Sri Lanka and Far East.