New Delhi: The Central Government has taken a relief decision for the onion producing farmers of the country. With the aim of providing better prices to farmers for their produce and maintaining balanced prices in the market, the government has increased the purchase rate of onion by 13 percent for price stabilization buffer. According to the new rate, the government will now buy onions at ₹2,125 per quintal instead of ₹1,875 per quintal. The revised purchase price has come into effect from July 4, 2026.
Procurement will be done through NAFED and NCCF
Onion procurement by the government will be done through National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) as before. With this decision, farmers are expected to get better prices, while the government’s buffer stock will also be strengthened, which will help in controlling prices in future.
Production almost equal to last year
According to the second advance estimate of 2025-26 of the Agriculture and Farmers Welfare Department, onion production in the country this year is estimated to be about 307.37 lakh metric tons (LMT). Last year in 2024-25 the production was 307.67 lakh metric tonnes. That is, there has been no major decline in production and the availability of onion in the country remains adequate at present.
Adequate stock of onion in these states
According to government assessment, there is sufficient stock of onion in the country’s major producing states Maharashtra, Madhya Pradesh and Gujarat. So far, there has been no situation of shortage in storage anywhere, due to which the supply is likely to remain normal in the coming time.
More than 50 thousand tons arriving daily
Arrival of more than 50,000 metric tonnes of onion is being recorded daily in agricultural markets across the country. More than 30,000 metric tonnes of onion is reaching the markets of Maharashtra alone every day. It is clear that the supply in the market remains constant.
Farmers will get direct benefits
This decision to increase the onion purchase price is being considered an important step towards increasing the income of farmers. With the implementation of the new purchase rate, farmers will get better prices for their produce, while the government will have sufficient buffer stock to control prices by increasing supply in the market if needed. This is expected to help maintain a balance between the interests of both farmers and consumers.
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