Onion Price: Big gift from the Center to onion farmers, increase in purchase price, now they will get higher prices than before.

There has been a relief news for the farmers regarding the price of onion and government procurement. Amidst the Kharif season, the Central Government has decided to increase the government procurement rate, due to which farmers are hopeful of getting better prices for their produce. With the implementation of the new rate, the procurement process is also likely to speed up.

The government believes that this decision will not only benefit the farmers, but will also strengthen the buffer stock being created for price stabilization. At a time when there is a possibility of price fluctuations in the market, this decision is considered important.

Government increased the purchase price of onion

The Central Government has increased the government procurement price of onion by about 13 percent for price stabilization buffer. Now onion will be purchased from farmers at the rate of Rs 2,125 per quintal instead of Rs 1,875 per quintal.

The new purchase rate has come into effect from July 4, 2026. The government is purchasing onions from farmers through the National Agricultural Cooperative Marketing Federation and the National Cooperative Consumer Federation.

Production expected to be same as last year

According to the second advance estimate of the Agriculture and Farmers Welfare Department, onion production in the country is likely to be around 307.37 lakh metric tonnes in the year 2025-26.

Last year the production was 307.67 lakh metric (Onion Price) tonnes. That is, this time also the production is expected to remain almost the same, due to which no major concern is being raised regarding availability in the country at present.

Adequate reserves exist in three states

According to government information, adequate stock of onion is available in Maharashtra, Madhya Pradesh and Gujarat. Good quality onion is also present in storage, which can be launched in the market as per requirement.

More than 50 thousand metric tonnes of onion is arriving every day in the markets across the country. In Maharashtra alone, more than 30 thousand metric tonnes of onion is reaching the markets every day.

Also keep an eye on betting in the market

Onion procurement is being seen on speculative basis in Nashik of Maharashtra and some areas of Madhya Pradesh due to delay in monsoon and less rainfall in some areas. However, the government says that demand in major consumer markets remains normal and this purchase is being done on the basis of expectation of future price increases.

Exports continue, but pace may slow down

During June 2026, about 1.50 lakh metric tons of onion was exported from India (Onion Price). However, the pace of exports may slow down in the coming times.

Due to this Pakistan And China’s new crop is said to be available at competitive prices in the international market. Whereas in Maharashtra, sowing of Kharif onion has started late by about 15 days, while in some major areas of Karnataka, sowing has reached about 60 percent of the normal.