With the Andhra Pradesh government announcing compensation for onion farmers, the purchase of onion at a remunerative price of ₹1,200 per quintal from ryots will be stopped from Monday.

Joint Collector B. Navya said that the State government had announced a compensation of ₹50,000 per hectare for the farmers, whose crops got damaged, and were facing hardships to get remunerative prices. The amount will be credited directly into the bank accounts of farmers.

Ms. Navya said the market yard at Kurnool would be closed on Sunday. "From Monday onwards, farmers have to sell their produce directly to local traders or other markets wherever they get a good price. Onions that have already been brought to the market yards and yet to be sold can also be shifted to other places and sold by the farmers," she said.

Ms. Navya said earlier, the government used to pay compensation of ₹25,000 per hectare to the farmers who lost their crops to heavy rains or other unforeseen events. Chief Minister N Chandrababu Naidu has announced that the compensation given earlier would be doubled to benefit the farmers.

Meanwhile, Industries and Commerce Minister T.G. Bharath thanked the Chief Minister for announcing compensation for onion farmers. "The State government have to bear a burden of more than ₹100 crore for this," he said.

Nandyal MP Byreddy Shabari has welcomed the decision. Onion is cultivated in 45,278 acres in the undivided Kurnool district and 24,218 farmers will stand to gain from the compensation announced by the government.

She said the government had come to the rescue of the Totapuri farmers by paying ₹260 crore at ₹4 per kg of produce. Similar initiatives were launched for tobacco and cocoa farmers too.

Roads and Buildings Minister B.C. Janardhan Reddy said the government has proved again that it is pro-farmer. The Chief Minister has been constantly monitoring the situation, he said.

Mr. Janardhan Reddy accused the YSR Congress Party (YSRCP) of neglecting the onion farmers when the party was in power and instigating farmers to agitate against the government for 'selfish political gains'.

Onion procurement by A.P. govt. to be stopped from September 22 as compensation announced for farmers