Rs 50,000 per Hectare As Compensation to Onion Farmers

Vijayawada: Agriculture minister Kinjarapu Atchannaidu has said the government has taken historic steps to protect onion farmers from financial losses, with chief minister Chandrababu Naidu announcing a significant compensation .

“We are implementing robust plans to safeguard their interests amid falling onion prices, he said on Thursday.

Atchannaidu said the government intervened by purchasing onions from markets to ensure farmers weren't left high and dry. “Onions valued at around Rs 18 crore were procured from Kurnool markets, with Rs 10 crore already deposited directly into farmers' accounts, and the remaining amount would be paid soon.”

He said, “Understanding that mere market intervention is insufficient to support farmers, the chief minister decided to grant Rs 50,000 per hectare as compensation to onion farmers. This would be of great help especially to farmers in Kurnool and Kadapa districts and protect thousands from financial distress.”

The compensation, he said, is significant: Rs 76.16 crore for 23,316 farmers across 15,232 hectares in Kurnool, and Rs 28.41 crore for 6,400 farmers across 5,681 hectares in Kadapa, totalling Rs 104.57 crore for nearly 30,000 farmers over 20,913 hectares. “The government is working to release these funds promptly.”

Atchannaidu criticised the previous government for its “insufficient” support to farmers in 2020 when onion prices fell. “Now, We are offering a higher procurement price of Rs 1,200 per quintal compared to the Rs 770 earlier.”