NAFED launches emergency onion procurement at Rs 12.35/kg as glut crashes wholesale prices
Record rabi harvest and Gulf export disruption push Lasalgaon wholesale to Rs 1,100/quintal and retail to Rs 25/kg. NAFED-NCCF buying under Price Stabilisation Fund kicks in as retail onion inflation stays negative (-17.67% YoY Apr 2026) since May 2025, pressuring grocery category margins.
What happened
NAFED begins emergency onion procurement at Rs 12.35/kg under Price Stabilisation Fund as record rabi harvest and Gulf export disruption crash wholesale prices;
Key facts
- Rs 12.35/kg procurement price
- 0.1 MT target FY26
- 0.3 MT FY26 actual
- 0.47 MT FY25
- Rs 1,100/quintal wholesale
- Rs 25/kg retail
- -17.67% YoY retail inflation Apr 2026
- 30.76 MT production 2024-25
- 1.5 MT exports FY26
Why this matters
Distressed onion-supply-chain assets (cold storage, FPO aggregators) become acquisition targets as Gulf export channels reopen and consolidation accelerates among undercapitalized traders.