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It is a summer of discontent for chilli farmers in Andhra Pradesh. There has been a drastic fall in the prices of different varieties of red chilli this year at the local agricultural market yard, said to be the largest chilli market in Andhra Pradesh and the country, and small farmers in particular are in great distress. The fall in prices in comparison with last year has been in the range of Rs 3,000-Rs 5,000 per quintal for different varieties. It is particularly galling for farmers as last year was a good year for chilli cultivation and there has been 25-30 per cent increase in the cropped area in anticipation of good prices.
Teja, said to be a premium variety, is now fetching Rs 7,000-8,000 per quintal in comparison with last year's Rs 12,000-Rs 14,000. Byadiga and Devam varieties are fetching Rs 7,000 per quintal against Rs 10,000-11,000 per quintal last year. The prices of some of the inferior varieties have fallen below Rs 5,000 per quintal, making it difficult for the farmers even to recoup the cost of cultivation.
M. Lakshminarayana, a progressive farmer who has been cultivating chilli for decades, is of the opinion that the Government should constitute a price stabilisation fund with a corpus of Rs 100 crores or so and take up market intervention measures whenever there is a price crash, as during the present season. "The small farmer needs protection. The big farmer may keep the produce in cold storages and sell it later. A farmer has spend more than Rs 1 lakh, even going up to Rs 1.5 lakh, per acre and at present rates many of them may face financial ruin," he said.
K. Rosaiah, the former president of Chilli Merchants' Association, said that unfortunately many farmers this year had taken up the cultivation of inferior varieties and they are in great distress. "Even in the present market the premium varieties are commanding a reasonable price, though not as high a price as last year," he said.
M. Subba Rao, the chairman of the agricultural market committee, said the arrivals at the market yard were good, and the excess production besides a good crop in Pakistan might be contributing to the price slump.
sarma.rs@thehindu.co.in
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