Chilli prices have dropped by 35 per cent on slack demand, leaving growers worried. Prices have fallen to ₹12-13,000 a quintal this year against ₹19,000 in January 2024.

Prof. Jayashankar Telangana State Agricultural University pegged a per quintal price of ₹14,500-16,500 at the time of harvesting during January to March 2025. Experts say a lull in global demand, particularly from China, led to the price drop in the country.

Exports value down

“Red chilli exports in September 2024 were 36,276 tonnes, reflecting a 4.09 per cent decrease from the previous month,” a State government report, quoting the national figures, said.

Data from the Spices Board show that chilli exports during April-October 2024 were 3.31 lakh tonnes valued at $645.15 million compared with 3.04 lakh tonnes valued at $757,.84 million. The value of chilli exports dropped 15 per cent in value in the first half of the current fiscal.

This has resulted in Telangana farmers urging the Central and State Governments to bail them out by purchasing the produce at ₹20,000 a quintal.

“Hoping for better prices, several farmers stored their produce in cold storage facilities. But seeing no signs of any increase, they are being forced to sell it at a low price. They are facing huge losses. The prices fell by 50 per cent if you compare with ₹25,000 in 2023,” Bonthu Rambabu, a chilli farmer and a senior leader of Telangana Rythu Sangham, told businessline.

In 2023, the global chilli cultivation area was 18.03 lakh hectares, with a production of 58.22 lakh tonnes. 

Acreage plummets

While India leads the world in chilli production with 27,82 lakh tonnes, Andhra Pradesh and Telangana lead in the country. In 2023-24, Telangana ranked third in chilli area and second in production and productivity, with 3.92 lakh acres and 7.94 lakh tonnes, respectively. The productivity, however, is way lower at 2,021 kg per hectare against the global average of 3,229 kg per hectare.

“Farmers are being forced to sell their chili peppers at very low prices due to a lack of stable pricing. Many farmers are facing financial crisis due to debt,” he said.

The chilli area in the State has plummeted from 4.50 lakh acres to 2.34 lakh acres in the State over the last few years. “Despite the drastic fall in the area, we see no demand coming for the crop. On the other hand, pests and diseases resulted in a crop loss of up to 40 per cent,” he said.

Protesting against unremunerative prices, chilli farmers in Lalapuram area of Khammam district held a dharna on Wednesday. They demanded an assured price of ₹20,000.

Telangana Rytu Sangham State Joint Secretary Shobhan Mood has asked Nafed (National Agricultural Cooperative Marketing Federation of India) and Markfed, the national and State-level marketing agencies, to immediately intervene to purchase chilis to bail the farmers out of the crisis.

Published on January 30, 2025