Date:20/04/2005 URL: http://www.thehindu.com/2005/04/20/stories/2005042003740500.htm

Andhra Pradesh

Chilli prices far above break even

Staff Reporter

Market intervention scheme fetches good amount to farmers

GUNTUR: The chilli farmers in Guntur district have been demanding at least Rs.3,000 per quintal for their produce, while the breakeven price for average farmer works out to Rs.1,115 per quintal. The average ruling price in the open market on Tuesday was Rs.1,700 per quintal for the Fair Average Quality.

The Andhra Pradesh Markfed had introduced a market intervention scheme (MIS-05) from April 11 at Rs.2,300 per quintal limited to 10 quintals per farmer, which would fetch good amount to the farmer. Lack of proper crop planning for both chilli and cotton was one of the reasons for problems of abundance.

The cropped area under chilli reduced by 3 per cent during 2004-05 season following 47 per cent increase in area under cotton. Filed crop-cutting experiments showed that against the normal 57,213 hectares only 55,534 hectares was sown in the district, while chilli yield saw an increase of 2.6 quintals per hectare compared to 2003-04 season.

According to the input costs worked out by the Department of Agriculture for the current year for all four stages from `preparation of land' to transporting chillies to the market yard, on an average per hectare farmers spent Rs.58,775. The yield per hectare, however, went up from 50.35 quintals to 52.98 quintals per hectare.

Favourable climatic conditions reduced the usual problem of discolouration, which fetches half the normal price and this kind of chilli in local terminology was called `taalu.' On an average out of 22 quintals per acre two to three quintals was of this quality, which got restricted to just below 2 quintals i.e. less than 10 per cent, according to agriculture officials.

Except for a couple of mandals in the districts, other mandals did not receive rains while harvesting, which restricted the discolouration and fungus problems and to farmers' delight the expenditure on pesticides was far lower than expected.

Proper grading of chillies was the only answer for fetching good price for their produce, but at the Andhra Pradesh Markfed procurement centre, majority of the lots had very high percentage of white chilli and foreign objects/broken chilli.

This gave a clear indication that farmers were trying to push bad quality through the MIS-05 selling better variety in the market.