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Gujarat government offers ₹2/kg financial support to onion farmers

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Agri Business

A 35 per cent higher output has made prices unremunerative for farmers

The Gujarat government on Monday announced Rs 200 per quintal financial support to onion farmers after a bumper crop in the state.

As markets in Saurashtra — a key onion growing region in the State — were flooded with fresh crop, prices started dropping, triggering discontent among farmers.

The Gujarat Agriculture Minister, Raghavji Patel, on Monday announced financial assistance of Rs 2 per kg or Rs 200 per quintal for the farmers, with a limit of Rs 50,000 per farmer.

The state government has made provisions for Rs 100 crore for the financial assistance.

“During this rabi season, we have seen about 88,000 hectares of onion cultivation in the State. This has led to higher than average production this year and heavy arrivals at the markets. Therefore, we have observed onion prices falling since April 1,” said Patel, adding that the government had received multiple representations from the growers and farmer organisations on the unremunerative prices of onion.

During the rabi season last year, the total onion cultivation was recorded on 60,000 hectares with an estimated output of 17.67 lakh tonnes. During the 2021-22 rabi season, total sowing is estimated on 88,100 hectares, while the output is about 35 per cent higher at 23.92 lakh tonnes.

Onion prices at the Mahuva market in Bhavnagar district – a hub of the state’s onion trade – saw minimum prices hitting a low of Rs 200 per quintal on May 9, for red onion and Rs 310 per quintal for white onion, with arrivals of 28,392 bags of 50 kg each for red and 72,338 bags for white onion. Last year around the same time, prices were hovering around a minimum rate of Rs 975-1,095 per quintal.

Published on May 09, 2022

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