Mirchi prices not hot enough for Guntur farmers

Though exports of mirchi during the first nine months of the current fiscal touched a record 99,000 tonnes as compared to 81,000 tonnes during the same period last fiscal, farmers, who have harvested the crop in 58,000 hectares in Guntur district, have remained an aggrieved lot, as any price lower than Rs 4,000 per quintal is not profitable for them.

As the auctions progress into the third week this season, even special varieties of red mirchi, 'wonderhot' and 'badiga' have earned farmers highest prices of only Rs 3,200 per quintal. The average price hovered around Rs 2,800 while the lowest price was Rs 2,000 per quintal.

M Sivaramakrishnaiah, special grade secretary of the Agriculture Market Committee, Mirchi Yard, told Business Standard that farmers were unloading mirchi bags in the yard without grading the harvest. This, according to him, had been putting them to a loss of Rs 200-300 per quintal.

On February 9, non-AC (air-conditioned) red mirchi brought farmers a maximum of Rs 2,800 and a minimum of Rs 1,300 with the model price fixed at Rs 2,300.

All common varieties of AC mirchi were auctioned at the highest price of Rs 2,800 and the lowest price of Rs 1,400 with the model price standing at Rs 2,100.

Non-AC white chillies fetched a maximum rate of Rs 1,200 and a minimum of Rs 450. AC white chillies were auctioned at the highest rate of Rs 1,250 and the lowest rate of Rs 500 with the model price standing at Rs 800.

"The crop area had gone down by 25 per cent this year as compared to last year's crop acreage. However, farmers on an average reaped around 20 quintals per acre as against 15 quintals last year," Sivaramakrishnaiah said.

Meanwhile, K V Rosaiah, president of Mirchi Exporters' Association, and a member of the Spices Board, traced the downfall in mirchi prices to the sudden slump in mirchi exports from December. Traders hoped that exports would pick up in March and ensure at least Rs 3,500 per quintal for farmers.

He said that if the dismal picture on exports continued, farmers would have to face a further Rs 3 per kg fall in mirchi auction prices.

He said that the exports might touch Rs 411 crore (1.25 lakh tonne) by March this year, as compared to last year's figure of Rs 311 crore.