Sluggish demand dashes farmers hopes

chilli cartels rub salt into the wound

​Hyderabad: Red chilli farmers, who enjoyed exceptional demand for their produce around this time last year, have found themselves in a tight spot these days with the price plummeting to a new low.

While farmers and various peasant organisations blame traders for the steep fall in chilli prices to the extent of Rs 3,000 to Rs 4,000 per quintal, the traders attribute it to the low demand in domestic and international markets.

Lured by last year’s bumper price, the area of cultivation in Warangal and Khammam undivided districts, the two major producers in the State, went up phenomenally.

While the normal area under chilli cultivation is 35,000 hectares in Warangal district (undivided), it went up to 45,000 hectares this year.

Similarly, area of cultivation also increased in Khammam district (undivided) by 8,000 hectares against the normal area of 24,000 hectares.

When contacted the Chamber of Commerce Chilli Section President Rajesh Karani told The Hans India: “Chilli sowing went up by 25 per cent in the country this year.

Further it was complemented by favourable weather conditions resulting in a bumper harvest to the farmers. As it was not enough the sluggish export demand made the chilli price tumble.”

Warangal Enumamula Market Yard secretary Ajmeera Raju said: “Right from the day one of the chilli arrivals, the pricing was not on the expected lines.”

The price of various varieties of chilli at the Enumamula Market on Thursday: Teja (Rs 8,500 – Rs 7,600 per quintal), Wonder Hot (Rs 9,100 – Rs 8,500), US-341 (Rs 7,800 - Rs 7,000), Deepika (Rs 10,100 - Rs 9,000) and DD (Rs 7,400 – Rs 5,800). (Highest and lowest prices in parenthesis).

In Khammam, the highest price of Teja variety was at Rs 8,670 and the lowest Rs 7,600 a quintal. The situation in Jogulamba Gadwal district is no different with the chilli price hovering around Rs 8,000 a quintal.

Chilli was taken up in around 35,000 acres in the district. With no marketing facilities nearby, farmers had to go Hyderabad or Guntur.

It may be noted here that arrivals of desi variety red chilli, the most sought-after of all kinds, to Enumamula Market are yet to begin. The price of desi variety witnessed a colossal high with Rs 18,000 a quintal during the corresponding time last year.

Challa Narsimha Reddy of Thogarrai village under Duggondi mandal in Warangal Rural district said that price fell by more than Rs 3,000 a quintal compared to last year.

Badavath Srinu of Adavi Maddulapalli under Kamepalli mandal in Khammam district said: “I got Rs 12,000 per quintal a fortnight ago when I sold a part of my produce. Now, the price fell to Rs 7,000 a quintal.”

Demanding the government either to fix a minimum price of Rs 15,000 per quintal or to start purchases by itself, the Rythu Sangham State Joint Secretary Nunna Nageswara Rao and Warangal district secretary Peddarapu Ramesh charged the merchants of forming a cartel and dictating the price.

The closure of Chenguang Biotech (India) Pvt. Ltd. located in Mudigonda mandal of Khammam district that manufactures colour and oil from red chilli also has its adverse impact on the price.

It’s learnt that the unit alone consumes around 20,000 bags (about 35 kgs) of chilli every day. Meanwhile, a delegation of peasant leaders led by Farmers JAC State chairman and retired High Court Judge Justice B Chandra Kumar visiting Enumamula Market on Friday.

The leaders have also plans to meet the district officials to apprise them of the chilli farmers’ problems.