Archive · 28 Jul 2025
Govt's Onion Purchase Price Drops Due to Bumper Crop
The government is buying onions from farmers at a much lower price this year, about half of what they paid last year.
This is because there are lots of onions being grown, which is also causing the price to go down in stores.
Government agencies buy these onions to keep in reserve and sell them when prices go up.
Last year, they sold onions at a subsidized rate when prices went up.
Now, the price of onions in stores and the rate of price increase is much lower compared to last year.
Government agencies' onion purchase price dropped 48% to Rs 15/kg for the 2025-26 season.
Agencies have purchased 0.19 million tonnes of onion, against a target of 0.3 MT.
Purchases primarily occur in Maharashtra, with some in Madhya Pradesh and Gujarat.
Government agencies release buffer stocks to stabilize prices during festive periods.
Retail prices of onions have declined by 35% year-on-year, with retail inflation down 26.62% in June, 2025.
- Who
- Government agencies, farmers, and consumers.
- What
- Government's onion purchase price dropped, and retail prices decreased.
- When
- 2025-26 season.
- Where
- Nashik, Pune, Ahmednagar (Maharashtra), Madhya Pradesh, and Gujarat.
- Why
- Due to bumper onion output and falling market prices.
Consumers
Farmers
Price impact
Consumers
Consumers benefit from lower prices.
Farmers
Farmers may experience reduced income.
- Purchase Price (2025-26)
- Rs 15/kg
- Purchase Drop
- 48%
- Onion Purchased (Target)
- 0.19 MT (0.3 MT)
- Retail Price (Monday)
- Rs 28/kg
- Retail Price Decline
- 35% (Year-on-year)
- Retail Inflation (June 2025)
- 26.62% decline (Year-on-year)
- Production Increase (2024-25)
- 27% to 30.77 MT