Chilli prices stable as acreage falls; Atchanna reviews market trends

 Guntur: Agriculture minister K Atchannaidu on Wednesday said red chilli prices this season are encouraging, attributing the stability to a reduction in cultivation area compared to last year. He recalled that higher prices in the previous season had prompted farmers to take up extensive chilli cultivation, which eventually led to market imbalances and a sharp fall in prices.

The minister was speaking at a review meeting on chilli prices held at the office of the agriculture marketing commissioner in Guntur. The meeting was convened to take advance measures to ensure that the difficulties faced by chilli farmers last year are not repeated this season.

Atchannaidu said Chief Minister N Chandrababu Naidu has clearly instructed officials to create awareness among farmers about maintaining an optimum area under chilli cultivation to ensure price stability.

He recalled that the minimum support price (MSP) last year was Rs 11,750 per quintal and noted that productivity has declined by 44 per cent this year.

He said chilli cultivation area has come down significantly from 1.96 lakh hectares last year to 1.06 lakh hectares this year. Production, which stood at 6.62 lakh metric tonnes last year, is expected to be around 5.39 lakh metric tonnes this season. The crop typically arrives in markets between December and January, and the state has a storage capacity of 13.88 lakh metric tonnes, he added.

During the peak season, daily arrivals are expected to range between 45,000 and 55,000 bags, with total arrivals likely to touch one lakh bags. Prices are encouraging for all varieties except the Teja variety. Market fees amounting to Rs.85.37 crore have been collected so far. The minister also noted that some farmers have shifted from chilli to other crops.

He said the Chief Minister is closely examining the issue of farmers not receiving remunerative prices and is planning to introduce a cluster-based cropping system aligned with market demand. Officials have been directed to conduct extensive awareness programmes for farmers on this initiative.

Atchannaidu said the Chief Minister has also directed that loans be sanctioned against chilli stored in cold storages this year to prevent financial distress among farmers. He added that arrivals from other states are being closely monitored to ensure that local farmers are not adversely affected. The minister said complete details of chilli farmers are being recorded and that 100 per cent e-crop registration is being ensured. Pointing out that only 100 computerised weighing machines are currently available, he directed officials to immediately increase their number and warned of strict action against those failing to issue mandatory receipts to farmers.

Transport charges will be fixed, and vehicles charging less than the prescribed rate should not be obstructed, he said, adding that chilli stored in cold storages must also be routed through market yards. He also instructed officials to provide all necessary facilities to farmers at the Guntur Mirchi Yard.

Marketing department director M Vijaya Suneetha, MLAs Naseer Ahmed and Galla Madhavi and DCCB chairman Haribabu were among those present.