Chilli prices have declined by 16-25 per cent over the past two months in view of arrivals picking up and sluggish demand, leaving farmers, especially in Telangana, unhappy.
The decline is despite farmers in Telangana reporting damage to their crop due to attack of pests and diseases. Growers in the State’s Khammam and Warangal districts have claimed that their crop has been damaged owing to black thrips and wilting. This has led to loss of yield and quality.
According to data from the Telangana Agricultural Marketing Department, the modal price (the rate at which most trades take place) of the Teja variety in the Warangal agricultural produce had declined to ₹18,000 a quintal now from ₹21,500 two months ago. Similarly, the modal price of the Wonderhot variety has slipped to ₹18,000 from ₹24,000 during the same period. A year ago, the Teja variety ruled at ₹19,150 and the Wonderhot variety at ₹34,000.
double-dealing
Following the farmers’ complaint, the Telangana Government has deputed a team of agricultural scientists to Khammam and Warangal to study the impact of pests and diseases, if any, on the spice crop.
The drop in the price has irked the farmers, who are now demanding ₹25,000 a quintal for their produce. They allege that they are getting a raw deal at market yards, where they are getting only ₹13,000-16,000. Farmers complain that traders declare a particular price when the purchase starts at the beginning of the day but they don’t honour that once the trading progresses.
“They are announcing a price of ₹24,000-25,000 a quintal in the morning. But they are reducing it as the day progresses, citing poor quality of the produce,” Telangana Rythu Sangham leader Bonthu Rambabu told businessline.
He said yields are low this year, with several farmers reporting a yield of five quintals an acre against 25 quintals in a normal season.
Awaiting correction
“In order to cover the costs, the farmers should at least get a minimum purchase price ₹25,000 a quintal,” Peddarapu Ramesh, the State unit President of All-India Kisan Federation, said.
Scientists at Prof. Jayashankar Telangana State Agricultural University (PJTSAU) have said the black thrips incidence is not serious this year.
The Market Intelligence of the university has pegged chilli prices around ₹18,000-19,500 per quintal during the month as the buyers are likely to be inactive in view of prices ruling high. They seem to be waiting for a price correction. Some farmers are reportedly holding back stocks anticipating better prices.
