“Gujarat’s government has launched a ₹124 crore aid scheme to support onion farmers hit by low prices in the 2025 rabi season. Offering ₹200 per quintal, the scheme will benefit 90,000 farmers who sold their crop to APMCs between April and May. Applications open on the i-Khedut 2.0 portal from July 1-15, 2025, under the Price Deficiency Payment Scheme.”
Gujarat Rolls Out ₹124 Crore Relief for Onion Farmers
In a significant move to alleviate the financial distress of onion farmers, the Gujarat government has announced a ₹124.36 crore financial aid package aimed at supporting growers who faced low market prices during the 2025 rabi season. The initiative, part of the central government’s Market Intervention Scheme (MIS) implemented through the Price Deficiency Payment mechanism, targets approximately 90,000 farmers across the state who cultivate both red and white onion varieties.
The aid package offers farmers ₹200 per quintal for onions sold to Agricultural Produce Market Committees (APMCs) between April 1 and May 31, 2025. However, the assistance is capped at 250 quintals per farmer, translating to a maximum of ₹50,000 per individual. This decision comes in response to a bumper onion harvest in Gujarat, which led to an oversupply in markets, particularly in Saurashtra, a key onion-growing region. The surplus caused prices to plummet, with red onions fetching as low as ₹200 per quintal and white onions ₹310 per quintal at the Mahuva market in Bhavnagar, a major onion trade hub, as reported earlier this year.
Agriculture Minister Raghavji Patel, announcing the scheme in Gandhinagar, emphasized the government’s commitment to supporting farmers facing economic challenges due to unremunerative prices. “The state has received multiple representations from farmers and organizations highlighting losses due to low onion prices. This aid is a proactive step to ensure their financial stability,” Patel said. The scheme is managed by the Directorate of Horticulture under the Department of Agriculture, ensuring streamlined implementation.
Eligible farmers can apply for the aid through the i-Khedut 2.0 portal, with the application window open from July 1 to July 15, 2025. The online process aims to ensure transparency and accessibility, allowing farmers to register their claims efficiently. The government’s allocation of ₹124.36 crore underscores its focus on supporting the agricultural sector, particularly in the wake of market fluctuations caused by overproduction.
This is not the first time Gujarat has stepped in to support its onion farmers. In 2022, the state allocated ₹100 crore to provide ₹2 per kilogram to farmers, and in 2023, a ₹330 crore package was announced for onion and potato growers facing similar price crashes. These recurring interventions highlight the volatility of onion prices, driven by factors such as bumper harvests and unpredictable weather patterns. For instance, unseasonal rains in 2023 and 2024 damaged crops, further complicating market dynamics for farmers.
The current scheme has been welcomed by farmer organizations, with many praising the government’s swift response. However, some farmers have called for long-term solutions, such as better storage facilities and export incentives, to prevent future price crashes. The state’s budget for 2025-26, presented by Finance Minister Kanubhai Desai, also reflects a broader commitment to agriculture, with provisions for farmer-friendly initiatives like the Mukhya Mantri Paushtik Alpahar Yojana and infrastructure development under the Anganwadi Yojana.
As Gujarat continues to be a leading onion-producing state, with an estimated 88,100 hectares under cultivation during the 2025 rabi season, the aid scheme is expected to provide much-needed relief to farmers grappling with market uncertainties. The initiative not only addresses immediate financial concerns but also reinforces the state’s role in supporting its agricultural backbone.
Disclaimer: This article is based on information from recent news reports, official government announcements, and agricultural data available on the web and posts on X as of July 5, 2025. The details provided are subject to change based on further updates from the Gujarat government or related authorities. Farmers are advised to verify eligibility and application details through the i-Khedut 2.0 portal or official sources.