NEW DELHI: Union Agriculture Minister Shivraj Singh Chouhan has given nod for the Market Intervention Scheme (MIS) to bail out the red chilli farmers of Andhra Pradesh in the wake of slump in market prices.
The Union Minister has given the go-ahead to procure and compensate the chilli farmers to prevent them from resorting to distress sale.
During a meeting with representatives of the AP government on the plight of chilli farmers on Friday, Chouhan directed the Indian Council of Agriculture Research (ICAR) to assess the production cost of chilli farmers, and submit a report to the Ministry of Agriculture and Farmers’ Welfare (MAFW).
Based on the report, the Centre will compensate the farmers up to 25% of the intervened price under the MIS. He also asked the officials to prepare a proposal to increase the 25% limit under the MIS.
The chilli prices have crashed in the past few months, forcing the farmers to resort to distress sale.
India’s largest chilli market, Guntur Mirchi Yard, also known as ‘Chilli Capital of India’, has witnessed prices in the range of Rs 11,000 to Rs 13,500 per quintal as against over Rs 20,000 in 2023-24.
“The government will train chilli farmers how to harvest export quality chilli under the Mission for Integrated Development of Horticulture (MIDH). How to pluck chilli from the plant is an art that farmers need to be trained to produce export quality produce,” he said.
The Agriculture Ministry has directed the Agricultural and Processed Food Products Export Development Authority (APEDA) to find new avenues to export chilli.
Exports have declined due to weak international demand this season. Erratic weather in the chilli-producing region has impacted the crop. India exports chilli to countries like China, Malaysia and Bangladesh. Long dry spells and the extension of monsoon rainfall in Andhra Pradesh, Telangana, Karnataka and Madhya Pradesh has impacted the quality of chilli crop.
Moreover, erratic weather has also induced pest infestations, such as Nalla Tamara (black thrips), which has severely impacted the chilli crop yield, and increased the farmers’ investment. Union Civil Aviation Minister Kinjarapu Rammohan Naidu, Devesh Chaturvedi, Secretary, Ministry of Agriculture and Farmers’ Welfare, and senior officials from the AP government attended the meeting.
On Thursday, Chief Minister N Chandrababu Naidu interacted with Chouhan over the chilli farmers’ concerns, and procurement-related issues, through a video conference.