The central government increases the procurement price for onions used to build the 2026 buffer stock under the Price Stabilisation Fund (PSF) by 13%. The new rate is ₹2,125 per quintal, up from ₹1,875 per quintal, and represents the fifth upward revision in the current procurement season. According to an official statement cited by multiple outlets, the revised price takes effect from July 4, 2026.
The government’s stated goal is to accelerate PSF procurement and improve farmer participation, as procurement levels are described as sluggish. Reports say the procurement cycle began on June 1, and the government has purchased only about 2,000 tonnes for the 2026 buffer stock so far.
While procurement remains slow, official positions reported by outlets indicate that onion availability in the country is comfortable and that there is no immediate supply concern. Stocks in major producing states such as Maharashtra, Madhya Pradesh and Gujarat are described as sufficient. Some reports also link recent onion price volatility to speculative trading tied to delayed monsoon progress and uneven rainfall, rather than sustained demand.
