Onion procurement price for buffer raised 13% to ₹2,125/quintal

The onion buffer procurement price: what happened?

Onion prices jump every year in the lean months before the kharif crop arrives. The Government keeps a buffer stock so it can release onions when prices spike. A higher buying price helps the farmer now and fills the buffer before trouble starts.

• The procurement price for the buffer rose by ₹250 to ₹2,125 per quintal, effective 4 July 2026.
• Daily mandi arrivals stay above 50,000 tonnes all-India and above 30,000 tonnes in Maharashtra, at modal prices of about ₹18 per kg.
• A late monsoon has led to speculative buying, especially around Nashik and parts of Madhya Pradesh.
• Nashik reports about a 15-day delay in kharif sowing; the Chitradurga-Challakere belt of Karnataka is at about 60% of normal.
• Exports may slow for a while as fresh crops from Pakistan and China compete in the Gulf, Sri Lanka and the Far East.

What is the Price Stabilisation Buffer?

• A Government stock of onions built through NAFED and NCCF.
• It is released in the lean period to cool retail prices.
• Stocks in Maharashtra, Madhya Pradesh and Gujarat are described as adequate.

Why does the onion buffer procurement price matter?

• Farmers: A 13% higher buying price gives better returns before the lean season.
• Inflation: A full buffer is the first tool against onion price spikes.

What can Prelims ask on the onion buffer procurement price?

• Onion buffer price: ₹1,875 to ₹2,125 per quintal (13%), from 4 July 2026.
• Procuring agencies: NAFED and NCCF.
• Onion production 2025-26: 307.37 LMT (Second Advance Estimates).