The Andhra Pradesh government has declared that its direct procurement of onions from farmers, previously set at a remunerative price of ₹1,200 per quintal, will conclude this Monday, September 22.
Joint Collector B. Navya confirmed that the state government is introducing a compensation package of ₹50,000 per hectare for farmers whose onion crops have been damaged or who are struggling to secure fair market prices. This financial assistance will be directly deposited into the farmers’ bank accounts.
Ms. Navya also announced the closure of the Kurnool market yard on Sunday. Moving forward, farmers will be responsible for selling their onions directly to local traders or in other markets where they can achieve optimal prices. Any produce already brought to the market yards but still unsold can be transported and sold elsewhere by the farmers themselves.
Highlighting a significant policy change, Ms. Navya noted that previous government compensation for crop loss due to heavy rains or other unforeseen circumstances was ₹25,000 per hectare. Chief Minister N. Chandrababu Naidu has now effectively doubled this amount, underscoring the government’s commitment to supporting farmers.
Industries and Commerce Minister T.G. Bharath expressed gratitude to the Chief Minister for this decision, acknowledging that the state exchequer would incur a cost exceeding ₹100 crore to fund this compensation.
Nandyal MP Byreddy Shabari also lauded the initiative, noting its significant impact. In the erstwhile Kurnool district alone, where onions are cultivated across 45,278 acres, approximately 24,218 farmers are expected to benefit from this government compensation.
Shabari further mentioned the government’s previous support for Totapuri mango farmers, who received ₹260 crore at ₹4 per kg of produce, along with similar aid extended to tobacco and cocoa farmers.
Roads and Buildings Minister B.C. Janardhan Reddy affirmed the government’s pro-farmer stance, stating that the Chief Minister has been closely overseeing the situation.
Conversely, Minister Janardhan Reddy criticized the YSR Congress Party (YSRCP), alleging that they neglected onion farmers during their tenure and later incited protests against the current administration for political advantage.