The announcement comes at a critical juncture when farmers across the state, particularly in the Kurnool district, are grappling with distress sales due to a steep fall in onion prices.
Published Sep 20, 2025 | 9:41 PM ⚊ Updated Sep 20, 2025 | 9:41 PM
Chief Minister Chandrababu Naidu announces relief of ₹50,000 for farmers
Synopsis: Andhra Pradesh Chief Minister N Chandrababu Naidu announced financial assistance of ₹50,000 per hectare for those who cultivated onions during the current Kharif season. The agriculture minister said the government is determined to ensure structural reforms in the sector so that farmers receive fair prices for their produce.
In a significant move aimed at supporting farmers struggling with plummeting onion prices, Andhra Pradesh Chief Minister N Chandrababu Naidu on Saturday, 20 September, announced financial assistance of ₹50,000 per hectare for those who cultivated onions during the current Kharif season.
Agriculture Minister Kinjarapu Atchannaidu, speaking at the Chief Minister’s Camp Office, said the decision reflects the government’s commitment to safeguarding the livelihoods of farmers and stabilising the agricultural sector in “difficult times.”
The announcement comes at a critical juncture when farmers across the state, particularly in the Kurnool district, are grappling with distress sales due to a steep fall in onion prices. According to government estimates, onion was cultivated on 45,278 acres of land in Kurnool alone this season. According to government data, 24,218 farmers are expected to benefit directly from the relief package.
The agriculture minister revealed that the relief package is likely to place an additional financial burden of around ₹100 crore on the state exchequer, but the government believes the move will provide immediate and much-needed relief to farmers.
This year, the onion market witnessed a sharp decline in prices due to a combination of factors. Despite expecting decent profits, farmers were left scrambling to recover their expenses.
Heavy monsoon rains from the beginning of September reduced the demand for onions, all while flooded roads made transportation difficult. Trading activity slowed to a trickle as market yards looked emptier than usual.
Additionally, high humidity due to continuous showers damaged stocks. Traders avoided bulk purchases, fearing spoilage. Consumers, too, turned to non-perishable goods, adding to the slump in demand. The rains also delayed harvesting.
When the weather cleared, arrivals surged, sending prices down to just ₹200–400 a quintal in the face of a climbing supply. Farmers, who expected ₹1,500–2,000 per quintal, faced heavy losses. Most of them had reportedly spent between ₹800 and ₹1,000 to produce a quintal of onions.
Atchannaidu said the announcement echoes past interventions by the Naidu government and recalled that when onion prices collapsed in 2016, the state had purchased 2.77 lakh quintals from 7,723 farmers, paying out around ₹7 crore. Similarly, in 2018, another market downturn prompted the government to buy 3.48 lakh quintals from 9,740 farmers, disbursing ₹6.45 crore in payments.
In sharp criticism of the previous YSRCP government, Atchannaidu said that when onion prices fell again in 2020, the administration failed to adequately protect farmers.
“Instead of ensuring meaningful relief, the government then set a nominal support price of ₹770 per quintal and purchased onions from only 250 farmers at a cost of ₹75 lakh. Thousands of farmers were left to their fate,” he said.
Atchannaidu stressed that the current coalition government will not allow farmers to be left vulnerable in times of crisis. He urged onion growers to wait for better market conditions and assured them that the government is actively monitoring price movements.
He added that beyond the immediate relief, the government is determined to ensure structural reforms in the agriculture sector so that farmers receive fair prices for their produce.
“The welfare of farmers and the development of agriculture are our priorities,” the minister said. “We are committed to respecting the hard work of farmers by ensuring they are not left stranded when crop prices fall. This support of ₹50,000 per hectare is not just financial assistance; it is a message that this government stands shoulder to shoulder with farmers,” he added.
(Edited by Muhammed Fazil.)
