GUNTUR: Chilli farmers are reeling under distress as prices for various chilli varieties have dropped sharply in recent weeks. Guntur Mirchi Yard, the largest chilli trading hub in Asia, typically remains bustling year-round. However, a surge in production and a slowdown in international demand resulted in plummeting prices, leaving farmers in despair.
Farmers from distant areas such as Kurnool, Nandyal, Dachepalli, Sattenapalli, and even Telangana have been bringing their produce to Guntur, hoping for profitable returns. Instead, they are confronted with prices at a six-month low.
The Guntur yard handles over 1.5 lakh chilli tikkis annually, exporting to over 20 countries and generating an annual turnover of Rs 10,000 crore, with Rs 100 crore as State revenue. However, the prices of major chilli varieties have seen a dip of Rs 1,000 to Rs 2,000 per quintal. Latest closing prices for prominent varieties were: Teja S17 at Rs 13,000–Rs 16,000 per quintal, 334 Sannam at Rs 11,000–Rs 14,500, Bydagi 5531/668 at Rs 9,000–Rs 12,000, variety 341 at Rs 10,000–Rs 14,000, DD at Rs 11,000–Rs 14,000, and Armoor at Rs 9,000–Rs 11,500 for a 40 kg bag.
Explaining the decline, Sudheer, a merchant at the yard, attributed the sluggish market to reduced international demand. China, Bangladesh, and Vietnam, key importers of Indian chilli, have scaled back orders. Bangladesh reportedly has sufficient stocks for the next month, while demand from China remains low.
With falling prices, many farmers are opting to store their produce instead of selling it. Over 39.63 lakh bags of chilli are currently stored in cold storage facilities across the region, up from 32.64 lakh bags in December 2023. K Raghava Rao, a farmer from Kurnool, said, “I planned to sell my produce by year-end to resolve financial issues, but with prices at an annual low, I will incur losses. Storing it only adds to my burden.”
Experts predict prices may remain stagnant in the coming weeks until international trade gains momentum. Meanwhile, the State government is considering steps to support farmers. Agriculture Minister Kinjarapu Atchannaidu recently announced plans to introduce National Agriculture Market (eNAM) trading, establish chilli processing units, and promote value-added chilli products through Micro, Small and Medium Enterprises (MSMEs). These measures aim to stabilise the market and alleviate farmers’ woes in the long term, though immediate relief.
