Guntur: Red chilli prices plunge

Guntur: Chilli price is falling due to reduction of demand in the domestic market and international market. Lockdown also contributed for reduction of chilli price in the Asia's biggest chilli market in Guntur city. Almost all the prices of the red chillis fallen by Rs 2000 to Rs 3000 per quintal for the last two or three months. Chilli season is almost over. The farmers are already gearing up for cultivation of the chillis.

According to sources, Teja, which was sold at Rs 15,000, has seen reduction in prices at Rs 13,300 per quintal. Badigi price had fallen to Rs 13,000 from Rs 14,800 per quintal. The 334 variety of red chilli which was previously sold at Rs 12,500 is now being sold at Rs 10,300 per quintal. Common varieties like 273, No 5 prices reduced to Rs 10,500 to 10,000 per quintal.

Due to unexpected rains during last year, red chilli quality damaged.

As a result, the traders are offering lower price for damaged red chillis. China is not importing the red chillis from India as earlier. Due to lack of export orders, the exporters are not purchasing chillis as they used to. This is also one of the reasons for falling of chilli price. If the same situation will continue, chilli price likely to fall further.

Almost all the varieties of the chilli prices had fallen from Rs 2,000 to Rs 2,500 per quintal. Almost all the farmers suffered a minimum loss of Rs 1 lakh. The farmers who have cultivated more than four acres suffered more losses. Due to lockdown and holidays to Guntur MirchiYard, the farmers could not able to sell 50 lakh tikkies of the red chilli stock during this season and kept the red chilli stocks in the cold storage units.

A farmer K Sivaiah who is cultivating two acres of land near Piduguralla said, "Falling of demand in the international market and domestic market coupled with lockdown led to falling of chilli price. As a result, I have suffered a loss of over 2 lakh. Almost all the chilli farmers suffered losses."

An official in the Agriculture Market department T Bhaskara Reddy said, "Traders are not showing interest to purchase red chilli stocks. Reduction of demand for chillis will lead to falling of price in the days to come. The farmers expecting better price kept their red chilli stocks in the cold storage units."