Archive · 8 Jun 2025
Govt. Sets 72% Onion Procurement Rate, Involving Private Firms
The government is setting a rule to make sure most of the onions they buy stay good for sale.
They're working with private companies to store and move the onions.
This helps keep prices stable.
The goal is to have a big supply of onions in storage.
If too many onions rot, the price goes up.
The government hopes that the new rules will stop prices from jumping around.
They hope the price will stay low.
The government set a 72% cost recovery rate for onion procurement, up from 65% last year.
Private firms will be involved in onion procurement, storage, and transportation.
The aim is to create a buffer stock of around 500,000 tonnes of onions.
A higher recovery rate aims to ensure better market intervention and control prices.
Average retail price of onions was ₹26.17 per kg as of June 7.
- Who
- The Indian government and private firms
- What
- Setting a 72% cost recovery rate for onion procurement and involving private companies.
- When
- Procurement to start in the next few days, effective for this procurement year.
- Where
- India
- Why
- To stabilize onion prices and manage supply.
- Cost Recovery Rate
- 72%
- Buffer Stock Target
- 500,000 tonnes
- Grade-1 Onion Price
- ₹2,000 per quintal
- April Inflation Rate
- 3.16%
- Average Onion Retail Price (June 7)
- ₹26.17 per kg