The central government raises the onion procurement price by about 13% to ₹2,125 per quintal, citing the need to support farmers’ earnings and accelerate purchase of onions for the 2026 buffer stock under the Price Stabilisation Fund (PSF). Multiple outlets report that this is the fifth upward revision of the procurement price during the current season, and that the higher rate is intended to improve farmer participation as government buying starts slowly.
The revisions come as procurement remains sluggish. One report says the government has purchased only around 2,000 tonnes since the procurement cycle began on June 1, while outlets also note that wholesale arrivals continue and that domestic availability is not under immediate pressure. Government statements referenced across sources indicate that onion supplies remain adequate in key producing states such as Maharashtra, Madhya Pradesh and Gujarat, with sufficient stocks in storage. Meanwhile, price firmness is attributed in part to speculative trading linked to delayed monsoon progress and uneven rainfall, rather than a sustained surge in demand.
Overall, despite higher procurement rates and recent price volatility, official assessments say onion availability is comfortable as the lean season approaches.
