Chilli farmers in Telangana are in a belligerent mood as prices plummeted by more than half. With the State witnessing a bumper crop, the markets are flooded with the produce. As traders are refusing to lift the produce at a remunerative price, huge stocks are piling up at the market yards at Khammam, Warangal and in Hyderabad.
The price of chilli has fallen 50-60 per cent to ₹4,000-6,000 a quintal as against ₹12,000-13,600 at the same time last year. Farmers are angry as they won’t be able to recover costs. Farmers get an average yield of 20-25 quintals an acre.
While India accounts for 38 per cent of global production of 18 lakh tonnes, Andhra Pradesh and Telangana account for 50 per cent of India’s production. The cost of producing the crop is very high at ₹1.50 lakh an acre, which includes about ₹50,000 on picking chillies.
The farmers in Telangana shifted to chillies in several areas due to favourable weather in the kharif and the government’s advisory to them to shun cotton and look at alternative crops. The situation is no different in Andhra Pradesh.
“They have asked us to shun cotton due to poor demand in the international market and asked us to go for alternative crops such as maize, soya and chilli. Attracted by high prices last year, the farmers grew chillies in much larger area this time. But the government is shying away from rescuing us,” Jaipal Reddy, a farmer in Mahaboobabad told BusinessLine .
Irate farmers have burnt chilli bags at the Khammam and Yenumamula marketyards in the last few days to protest against the State government’s failure to intervene and bail them out. Those who can afford have stored their produce at the cold storage facilities.
“But how many can afford? They charge ₹200 a bag for six months to store at the facilities. If a farmer wants to store 50 bags, he would have to spend ₹10,000,” Jaipal, who grew chillies in four acres, said.
S Malla Reddy, Vice-President of All-India Kisan Sabha, said there was no place in cold storage units for farmers.
“Traders have taken the bulk of the space. If you don’t store the produce in these facilities, the produce gets spoiled,” he said.
Sensing the anger of chilli farmers, Telangana Irrigation and Marketing Minister T Harish Rao has written a letter to the Centre, seeking assistance under the Market Intervention Scheme.