At the meeting, farmers informed the Chief Minister that the cost of chilli cultivation is rising every year, but their returns are not increasing proportionally.
Published Feb 24, 2025 | 8:17 AM ⚊ Updated Feb 24, 2025 | 8:17 AM
Synopsis: The Andhra Pradesh government is considering establishing a board to safeguard the interests of chilli and mango farmers, addressing issues such as falling prices, rising cultivation costs, and export challenges. Chief Minister N Chandrababu Naidu has emphasised measures including financial assistance, improved infrastructure, and stricter regulations on transport costs to support struggling farmers.
Andhra Pradesh Chief Minister N Chandrababu Naidu on Saturday, 22 February, said that the state government is considering setting up a board to protect the interests of chilli and mango farmers, two major crops in the state.
Speaking at a meeting with chilli farmers, traders, officials, and exporters at the state secretariat in Amaravati, he addressed the recent crash in chilli prices due to low quality and a lack of international demand.
He emphasised that his primary concern is to support chilli farmers. He recalled that as soon as he became aware of the falling chilli prices and the resulting hardships for farmers, he wrote to the central government on 26 December last year and again on 5 and 11 February this year.
At the meeting, farmers informed the Chief Minister that the cost of chilli cultivation is rising every year, but their returns are not increasing proportionally. They explained that black mould disease has affected the quality and yield of chilli crops, leading to reduced productivity.
They highlighted that the cost of cultivation per acre has risen to ₹3 to ₹3.5 lakh. Labour costs, which were already high, have increased further this year, and labourers are also difficult to find.
Despite these challenges, farmers are not receiving a fair price for their produce. They complained that traders are reducing prices by ₹500 per quintal, citing quality issues. Farmers expressed frustration, questioning how the quality, which is good in the morning, could deteriorate by the afternoon.
They also raised concerns about high transportation costs, stating that when they hire lorries from outside the union, other lorry owners intimidate them.
Farmers suggested that announcing a bonus, similar to what was provided during the first term of the Telugu Desam government in the reorganised state of Andhra Pradesh, would greatly benefit them again.
Exporters explained that a significant portion of Andhra Pradesh’s chilli exports goes to China, Colombo, Bangladesh, and Indonesia. However, exports to these countries have declined this year, leading to a drop in prices within the state.
They noted that excessive pesticide use, due to floods in September, October, and November, has affected the quality of the produce.
Additionally, cold storage facilities still contain stocks from the previous crop, leaving little space for the new harvest. As a result, farmers are being forced to sell their produce directly in the market.
Exporters pointed out that 60 per cent of the chillies produced in the state are exported, but only 250 of the 410 major exporters are currently active.
They stated that the Krishnapatnam Container Terminal is not allowing chilli containers, forcing them to use Chennai Port, which increases transportation costs. They also highlighted the lack of basic facilities at the Mirchi Yard in Guntur.
The Chief Minister instructed officials to take strict action against lorry owners who charge exorbitant rents and exploit farmers. He stressed that transportation should not be monopolised in a way that causes hardships for farmers.
He directed officials to install electronic weighing scales at market yards and ensure that farmers receive SMS notifications as soon as their produce is weighed. He also assured that the government would soon hold discussions with bankers to provide loans.
Additionally, he instructed officials to improve infrastructure at the Spices Park in Guntur and provide farmers with guidance on drying chillies in the yards.
He suggested that scientists and officials hold field-level meetings with farmers to advise them on reducing chemical usage and lowering cultivation costs.
The Chief Minister announced that the soil testing programme, which the previous government discontinued, will be reintroduced. This initiative will help farmers assess soil health and decide which crops to cultivate.
He also mentioned that the central government has agreed to a proposal that if chilli prices fall below ₹11,781 per quintal, the Market Intervention Scheme (MIS) will be activated, with the central and state governments sharing the cost equally.
However, farmers expressed concerns that this could lead to farmers and traders from neighbouring states bringing their produce to Andhra Pradesh. The Chief Minister assured them that the state would discuss this issue further with the central government before making a decision.
He recalled that in 2017, when prices crashed, his government had intervened immediately, providing ₹1,500 per quintal and spending ₹135 crore to support farmers. He reiterated that the current government is taking similar steps to alleviate farmers’ hardships.
The Chief Minister stated that the government would consider providing assistance to farmers based on their records in the e-Crop system and sales data from market yards. He emphasised that every rupee spent on farmers should directly benefit them, not middlemen or other groups.
He assured that immediate steps would be taken to facilitate the transportation of chilli containers through Krishnapatnam Port after discussions with port authorities.
(Edited by Dese Gowda)
