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Government moots contract farming to boost export of chillies
To turn the Chill farming profitable, the State government is planning to introduce ‘contract farming’ system for the crop from this season. With this, the government is aiming at producing better quality crop and getting a better price for the product.
Amaravati: To turn the Chill farming profitable, the State government is planning to introduce ‘contract farming’ system for the crop from this season. With this, the government is aiming at producing better quality crop and getting a better price for the product. Under this system, exporters and food parks will enter into an agreement with the farmers to produce Chilli of international standards, as per the requirement of importing countries, such as United States of America, Germany and other European countries.
The companies will guide the farmers in producing better quality chillies and market them for high prices. Western markets pay as high as Rs 2,000 per quintal as premium price. If a farmer produces 100 quintals of quality chillies, he can earn Rs 2 lakh of additional revenue. This system has already been introduced in other States like Maharastra, Karnataka and Madhya Pradesh.
Now the AP government is planning to launch it in some villages on pilot basis. The horticulture department will soon form groups of farmers to produce quality chillies. According to sources, the importing countries are placing orders for 2,000 or 5,000 tones. But the exporters are unable to find enough quality chilli to meet the demand.
On the other hand, the chilli farmers are failing to get better price for their product. However, the local farmers are found using excessive amount of pesticides in farming. Due to this, several European countries and USA have already stopped importing chilli from some of the Indian States. Most of the products are being rejecting after they reach the market.
At the introduction of new system, exporters will guide the farmers to produce better quality chillies in safe methods. Deputy Director of Horticulture K Jayachandra Reddy said, “If the farmers form groups, the government is ready to provide them machinery on subsidy to encourage chilli exports. It would help the farmers getting better price. The exporters will also be benefited.”
High exports will also enhance country’s foreign exchange. Every year 15,000 tonnes of chilli is being exported to the USA. This year, it is planned to increase the exports to 30,000 tones. “We are linking the farmers with export companies. We are also conducting awareness camps and meetings in the rural areas,” he added.
