Guntur chilli farmers in distress as prices plummet
GUNTUR: Chilli farmers in Guntur are grappling with severe financial distress as the prices of various mirchi varieties have plummeted over the past few weeks.
Declining international demand, coupled with the poor quality of chilli has led to a slowdown in trade, leaving farmers disappointed and struggling to recover their investments.
Farmers from regions such as Kurnool, Nandyal, Dachepalli, Sattenapalli, and even neighbouring Telangana, who travelled to Guntur with hopes of earning high profits, are now burdened with losses.
The Guntur Mirchi Yard, the largest chilli market in Asia, exports over 1.5 lakh mirchi tikkis (40 kg bags) to more than 20 countries annually, generating a turnover of Rs 10,000 crore and Rs 100 crore in revenue for the State government.
However, prices for all chilli varieties have dropped by Rs 1,000 to Rs 2,000 per bag in recent weeks, marking their lowest levels in a year.
Sudheer, a merchant at the Mirchi Yard, explained that international trade has slowed significantly, particularly from key markets like China, Bangladesh, and Nepal.
“The usual export destinations, including Indonesia, Vietnam, Singapore, Malaysia, and Sri Lanka, have also reduced their orders, affecting overall demand,” he said.
According to official data, chilli cultivation in Andhra Pradesh spans 1.94 lakh hectares, with an estimated production of 11.29 lakh metric tonnes this season.
However, consecutive pest infestations have increased cultivation costs by over 30%, while unseasonal rains and pest-related damages have affected the quality of the produce, making it less competitive in international markets.
Many farmers, unable to sell their produce at profitable rates, are now facing financial hardships.
Venkateswara Rao, who cultivated chilli on four acres in Palnadu district with an investment of over Rs 2.5 lakh per acre, fears he may not break even. “With current market prices, there’s no way to recover our investments,” he said.
Farmers who chose to hold back their produce in anticipation of better prices now find themselves in a precarious situation, with little hope for immediate relief. In light of the crisis, Union Minister of State for Rural Development and Communication Dr Pemmasani Chandra Shekhar and MP Lavu Sri Krishna Devarayalu have raised the issue with Chief Minister N Chandrababu Naidu.
The CM promptly convened a review meeting with officials from the Marketing, Agriculture, and Horticulture Departments and directed them to take urgent measures to stabilise prices.
Following his orders, State Marketing Department Director Vijaya Sunitha held discussions with traders, vendors, and government officials. She urged traders to increase their purchasing activity and assured them that the government would provide necessary support to restore market stability.
As farmers await tangible measures from the State government, they are desperate for a price recovery to ease their financial burdens. The chilli market downturn has highlighted the urgent need for solutions to protect farmers from such crises in the future.
Union Aviation Minister Kinjarapu Ram Mohan Naidu and TDPP Leader Lavu Sri Krishna Devarayalu urged Union Agriculture Minister Shivraj Singh Chouhan to provide compensation to chilli farmers who suffered severe losses due to unseasonal rains in the last quarter of the previous year. They requested the union minister to purchase chilli at Rs 11,600 per quintal to support the chilli farmers.
Additionally, they submitted a letter from Chief Minister Chandrababu Naidu to the union minister, emphasising the need for relief measures to support the farmers.
He urged the Centre to enhance the financial aid provided to farmers under the PM Kisan scheme.
