Big news for farmers! The government has increased the purchase price of onion, now the amount per quintal will be as high as Rs

There is important news for farmers. The central government has taken a major decision to speed up government procurement of onion for its buffer stock and provide better prices to farmers. The government has increased the procurement rate of onion by 13 percent. The rate of which is Rs 2,125 per quintal. Earlier this price was Rs 1,875 per quintal. This is the fifth hike in government procurement rates this season. These revised rates will be applicable across the country from July 4, 2026.

Not with onions, but now with tomatoes, the price has risen again; 100 rupees per kg in a few days?

Despite frequent price hikes, purchases slowed

Government procurement of onion under the Price Stabilization Fund PSF has been very slow, so the government has had to revise rates frequently to speed up procurement. Since the procurement process started on June 1, the government has so far procured only 2,000 tonnes of onion for the 2026 buffer stock.

Beginning of season: ₹12.70 per kg
May 22: ₹15.80 per kg
June 13: ₹16.50 per kg
June 20: ₹17.30 per kg
After: ₹18.75 per kg
New price from July 4: ₹21.25 per kg (₹2125 per quintal)

Onion Market Status

Though government procurement is slow, there is no onion availability crisis in the country, says the consumer affairs ministry. According to the Agriculture Ministry’s second advance estimate, onion production is projected at 307.37 lakh tonnes in 2025-26, which is the same as last year’s production of 307.67 lakh tonnes.

Major states like Maharashtra, Madhya Pradesh and Gujarat have abundant stocks of onion. More than 50,000 tonnes of onion are entering the wholesale markets across the country every day. The average wholesale price of onion in the markets of Maharashtra is around Rs 18 per kg. Currently, the average retail price of onion across the country is Rs 31 per kg. According to the ministry, good quality onion is currently in storage and will be brought to the market in the coming months when supply is tight.

Monsoon delay and impact of speculation

According to officials, due to delayed monsoon and less than normal rainfall in parts of the country, some traders have started buying and stocking onions in large quantities. In Maharashtra’s Nashik and parts of Madhya Pradesh, this speculative activity is not driven by actual demand, but by fear of future price hikes.
Kharif onion sowing has been delayed by about 15 days in Nashik area, while sowing has reached only 60% of normal sowing in Chitradurga and Challakere belt of Karnataka.

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