World-renowned Byadagi chillies sees fall in price as production spikes

Haveri: The Byadagi chilli market in Haveri district is a world-renowned market. This market is the second largest market in Asia for chilli trade. This market has set a record by conducting a higher volume of trade compared to the previous financial year’s trade.

However, although the trade volume in the 2024-2025 financial year was higher than in the 2023-2024 financial year, the monetary value of the trade was lower this year compared to the previous financial year. Traders say this is due to the increased area under chilli cultivation and the decrease in chilli prices.

In the financial year 2023 and 2024, approximately 68,36,363 bags arrived at the market. Approximately 17,09,083 quintals arrived at the market. The market committee received approximately ₹19.12 crore in cess. In 23-24, the market traded ₹3187.73 crore. However, despite the highest volume of arrival in the 2024-25 financial year compared to the previous financial year, less cess was collected by the market committee due to lower prices.

In the financial year 2024-25, approximately 72,72,285 bags arrived at the market. Approximately 18,03,854 quintals of chilli came to the market. The total trade volume of the market in the 24-25 financial year was approximately ₹2067.61 crore. The cess received by the market was ₹12.40 crore. This means that in the trade of this year compared to the previous financial year, the number of bags increased by 4,35,922 bags.

Similarly, in terms of quintals, 12,871 quintals more chilli arrived at the market this year compared to the previous financial year. However, while the number of bags and weight increased, the cess and trade value decreased. This year, the market cess is ₹6.72 lakh less than last year. Similarly, the total market trade is ₹1,120 crore less than the previous financial year. Raju Morageri, Honorary Secretary of the Byadagi Chilli Market Committee, says that the decrease in chilli prices is the reason for this.

“The decrease in prices has caused severe damage to chilli-growing farmers. There is a possibility that farmers will turn away from chilli cultivation. If they cultivate chilli hoping for more profit, the price has decreased to the extent that getting back the expenses they incurred is enough. The government should come to the aid of chilli growers, declare a support price for dry chilli, and provide free seeds, fertilizers, and pesticides to chilli growers,” Raju requested.

“Farmers are cultivating chilli in more and more areas expecting high profits. However, looking at the current year’s chilli prices, we are not getting a fair price for our hard work. The government should come to our aid. Otherwise, in the coming days, we will be forced to switch to other crops instead of chilli,” say the farmers.