The opposition YSR Congress Party has criticised the chilli market intervention scheme announced by the Union Government to buy chilli in Andhra Pradesh and Telangana as "grossly inadequate" and said it will not bring much relief to the farmers in the two Telugu states.

Chilli prices have crashed to less than Rs 5,000 per quintal at Guntur, the main market yard in the State, and also at Khammam and other places in Telangana. The AP Government in April announced a price support scheme, offering an additional Rs 1500 per quintal, but it did not have much impact on the prices.

In the backdrop, Union Agriculture Minister Radhamohan Singh made an announcement in New Delhi on Wednesday that chilli would be purchased in the two states - 88,300 tonnes in Andhra Pradesh and 33,700 tonnes in Telangana - at a support price of Rs 5,000 per quintal, and Rs 1250 would be paid per quintal for additional expenses. The scheme would be in effect till the end of May and both the states will implement the market intervention scheme. The losses would be shared by the Union Government and the two states.

YSR Congress said that the conditions laid down by the Union Government would render the scheme ineffective and besides the price of Rs 5,000 per quintal was too low to provide any relief to chilli growers in the State. The party demanded that the entire crop lying with the farmers be purchased at a reasonably higher price, taking into account the cost of cultivation. Each farmer, it is estimated, may have spent Rs 1 lakh to Rs 1.25 lakhs per acre in raising the crop.

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