Chilli price fall leaves farmers in tears

Guntur: Chilli prices have been falling for the last twenty days in Asia's biggest Guntur Mirchi yard due to increase of production, fall in demand in the domestic and international markets.

• Byadiga, DD variety price down by Rs 1500 per quintal
• Traders in mirchi yard purchased 50-lakh bags of chillis

According to official sources, chillies which were previously sold at Rs 10,000 per quintal are now being sold at Rs 7,500 and expected to fall further. Whereas farmers are selling inferior quality of stocks for Rs 4,000 to 4,500 per quintal.

At present the traders are purchasing Byadiga, Devanur Deluxe variety at Rs 7,000 per quintal, which was sold for Rs 8,500 fifteen days ago. Last year, the same quality was sold for Rs 10,000 per quintal.

Teja variety is selling between Rs 7,000 and Rs 8,000 per quintal, which was previously sold at Rs 10,000 to Rs 10,500 per quintal. During the last season the same variety was sold between Rs 12,000 and Rs14,000 per quintal.

Tal is being sold at Rs 4,000 to Rs.5,000 per quintal, during the last season same fetched Rs 8,000. While, small and marginal farmers are selling chillis at lower prices to clear debts and fulfill their commitments, cash rich farmers are keeping their stocks in the cold storage units. Chilli buyers are turning the situation to their advantage and offering lower price to the farmers.

During this season, when the government has failed to release water for kharif in the N S Canal ayacut area of Guntur and Prakasam districts, the farmers cultivated, chillis. Similarly, the farmers whose cotton crop was damaged due to heavy rains, raised chilli because during the last year the chilli farmers got high price and profit. They got Rs14,000 per quintal due to increase demand and damage of crops in Pakistan and Bangladesh.

Chili crop also got damaged in Karnataka. The farmers who got better price during the last year started chilli cultivation this year too. As a result chilli growing area increased by 30 per cent in the State during this season. Due to the increase in output, chilli price has been falling for the last 15-days.

Agriculture Marketing Commission Chairman P Mallikarjuna Rao said " Chilli price is not falling. Due to increase of production demand for chillis has been falling. During the last season, the farmers got high up to Rs 14,000 per quintal. Comparing to 2013, 2014, chilli price is not falling. We have taken steps to get a better price for farmers. The farmers are selling chillis stock kept in the cold storage units also."

K Sambasiva Rao a chilli farmer in Pedanandipadu said "I have purchased seed at Rs 1-lakh per kg and invested another Rs 50,000 for cultivation. I got 20 quintals yield per acre. Due to falling in price, I am getting heavy losses. When the cultivation increased, minimum support has been falling. The government has to take steps to purchase chillis at MSP immediately. I am not in a position to feed my family due to losses".

Guntur Mirchi Yard secretary P Diwakar said "Increase in yeild led to fall in price. So far we have purchased 50 lakh bags of chilli stocks. Every year, on an average we purchase 1.3 crore bags. This year we are expecting Rs 2 crore bags due to increase in production. "