The Hindu Business Line : Markfed to procure chilli in Guntur

THE Andhra Pradesh State Marketing Federation, Markfed, is planning to take up market intervention at the agricultural market yard here to hold the falling price line of chilli and so far 37,000 farmers have registered themselves to sell the crop.

The procurement is scheduled to start from April 11 at Rs 2,300 per quintal. Last year, it may be noted, the crop was procured at Rs 2,700 per quintal.

The prices have crashed this year due to a good crop and even the finer varieties such as Guntur Sannalu are not fetching more than Rs 2,500 per quintal. The average price of the crop is hovering around the Rs 2,000- a-quintal mark. In this backdrop, the farmers have been agitating for a market intervention scheme, but due to the heavy loss suffered last year due to market intervention (estimated at around Rs 60 crore), the Government was not willing to take up the operation. But finally due to the pressure exerted by the farmers and the opposition Telugu Desam party and the Left parties the State Government conceded the demand.

The district collector, Ms G. Jayalakshmi, said the fair average quality red chilli would be procured and each farmer would be allowed to sell only 10 quintals.

Roughly, 7,500 bags (35-40 kgs each) would be procured every day and mandal-wise allocation would be made to facilitate smooth sale. Farmers would have to furnish proof of cultivation with a certificate from the mandal revenue officer.

Farmers' organisations are critical of the Government for giving too little too late and are of the opinion that the price of Rs 2,300 per quintal is too low. Besides, they allege, it has come too late to make any significant impact on the market.

According to the Spices Board officials, chilli exports have touched a record 1.3 lakh tonnes during 2004-2005 due to a good crop in all the chilli-producing states (with Andhra Pradesh accounting for almost 50 per cent of the production), but it has not had any beneficial impact on the prices. Farmers in the State are struggling for a remunerative price.

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