GANDHINAGAR, 1 July 2025: The Gujarat government has announced INR 124 crore in financial assistance for onion farmers hit by low prices during the 2024-25 rabi marketing season. The relief package aims to compensate growers who sold their produce at Agricultural Produce Market Committees (APMCs) between April and May this year, after a surge in harvest volumes depressed prices below production costs.
The aid will support around 90,000 farmers cultivating both red and white onion varieties. Under the program, farmers will receive INR 200 per quintal, capped at a maximum of 250 quintals or INR 50,000 per farmer.
Officials attributed the price collapse to record-high sowing of onions across 93,500 hectares in Gujarat — 74?ove the previous year’s sown area — which resulted in an estimated production of 249 lakh quintals. The heavy inflow into local APMCs led to a sharp decline in market prices, pushing many farmers into financial distress.
The state government framed the relief under the Price Differential Component of the Government of India’s Market Intervention Scheme (MIS), designed to protect growers from extreme price fluctuations.
The decision follows mounting complaints from farmers and agricultural associations, who petitioned the state administration for support. Eligible farmers must register on the i-khedut 2.0 portal by July 15 to claim assistance.
State officials noted that the average onion sowing area over the past three years stood at 77,700 hectares, making this year’s cultivation area a significant jump. The move, they said, underscores the government’s commitment to stabilizing farm incomes during periods of market volatility.
Image credit: indiatoday.in
