CHILLI - Market Prices Report

Overproduction & Unexpected rain hits chilli prices adds to the woes of Guntur Chilli farmers.

This year, the price has fallen to as low as US$300 to US$600 per mt.

After markets witnessed a Pegion Peas glut, Chilli is going the same way. Oversupply has led to the prices of the crop falling in major markets such as Dhule, Kolhapur and Nagpur, posing trouble for farmers. Last year, farmers had earned US$1400 to US$1875 per Mt. of chilli. This year, the price has fallen to as low as US$300 to US$600 per Mt.

As per data available from different market which lists prices of agricultural produce across Maharashtra, has state that in May, the average price of chillies sold in the various Agricultural Produce Market Committees (APMCs) in the state stood at US$500 per mt. The average price for the corresponding month last year stood at US$940 per mt.

India is the single largest producer of chilli, accounting for about 38 per cent of the global production, following by neighbours China with 7 per cent and Pakistan and Bangladesh contributing for about 5 per cent each. The rest of the output is spread across South American and African nations.

Andhra Pradesh and Telangana are the largest producers of chilli in India, and contribute about 26 per cent to the total area under chilli, followed by Maharashtra at 15 per cent. There has been a massive increase in chilli production across the country, especially in states such as Andhra Pradesh and Telangana, where the production this year has risen from about 800,000 tonnes to 2.4 million tonnes. “The massive glut from Andhra Pradesh and Telangana has driven prices to the ground. We seem to have overproduction in Maharashtra too, and at the present prices, farmers are finding it hard to recover their costs,” said by Farmers and chilli trader from different market.

Many local farmers are now demanding that the state start procuring chillies the way it has done with tur dal (Pegion Peas). States such as Andhra and Telangana are reported to have started such an endeavor to help local chilli farmers.“We are one of the biggest chilli producer states. The state needs to take some remedial measures to ensure that farmers are not subjected to such massive financial losses,” said by a chilli grower/farmers from different area and states.

Due to lack of space in Market Yard, chilli produce are now being kept in the open.

Weeks after chilli farmers in Andhra Pradesh staged protests following drop in market prices, the sudden rain in Guntur and other areas of the district have added to their woes.

To save the chillies from the rain and the possible damage, the farmers were forced to use plastic or tarpaulin covers.

Rain on Tuesday night and the prediction of rain on Wednesday increased the worries about saving the stock. The stock would become wet, damaging the quality of the chillis and it would reduce the market price. The chilli farmers are staying at the Chilli Yard to save the stock from sudden rain.

“The untimely rain has compounded our woes. At present, the price for chillies is less than US$40 per 100 kg. If our produce is damaged due to the untimely rain and damp weather conditions, we will incur further losses, “Chilli farmer says”.

After the state government reportedly announced US$25 per 100 kg compensation and US$98 Market Intervention Price by the Centre, there have been a rush of chilli farmers to sell their product.

However, due to lack of space in Sri Nandamuri Taraka Rama Rao Market Yard, chilli produce are now being kept in the open area.

“At present, the Chilli stocks in the yard are four to five times more than its storage capacity. Traders have started clearing the purchased stocks from the yard. It is advisable for farmers to go to the nearest purchasing Centre to sell their produce keeping in view the pre-monsoon rains in the State, “Market yard Chairman told”.

According to Deccan Chronicle, the highest rainfall of 36.6 mm in Guntur district was registered in Piduguralla mandal followed by Gurazala with 36 mm and 19.4 mm in Prathipadu.

As a result, farmers are reportedly being advised to go to their nearest Chilli purchase Centres, to avoid long distance inconvenience. The state Government have even started five extra purchase Centers in different parts of the state.

However, the farmers have been coming to Guntur, in the hope of getting better price.

Arrival in Guntur market is about 7000 bags and market is stable and prices are stable.