Red pepper crash stings farmers

Exports of red pepper, or 'mirchi' during the first nine months of the current fiscal have touched a record 99,000 tonnes as compared to 81,000 tonnes during the same period last fiscal.

However, farmers growing it in 58,000 hectares in Guntur district have been hit by low prices. Farmers claim Rs 4,000 per quintal is their cost of production.

Even special varieties of red mirchi like 'wonderhot' and 'badiga' are going at below only Rs 3,200 per quintal.

The average price has been around Rs 2,800 with the lowest price being Rs 2,000/qtl.

M Sivaramakrishnaiah, secretary of the agriculture market committee of Mirchi Yard, told Business Standard that farmers were unloading mirchi bags yard without grading it and this costing them as much as Rs 200-300 per quintal at the subsequent auction.

On February 9, non-AC (air-conditioned) type of red mirchi sold at Rs 1,300-Rs 2,800 per quintal with the model price fixed at Rs 2,300/qtl. All common varieties of AC mirchi sold at Rs 2,800/qtl, the cheapest going at Rs 1,400/qtl. despite model price of Rs 2,100/qtl.

Non-AC white chillies sold in the Rs 450-Rs 1,200 per quintal range. AC white chillies were auctioned between Rs 500-Rs 1,250 with the model price at Rs 800/qtl.

"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.

K V Rosaiah, president of Mirchi Exporters' Association, also member of the Spices Board, said mirchi prices fell because exports crashed from December.

Traders are hoping that exports would pick up in March to take prices back to Rs 3,500 per quintal.

If exports did not pick up, prices may fall another Rs 3 per kg fall at auctions.

Total exports might touch Rs 411 crore or 1.25 lakh tonne by March this year from last year's Rs 311 crore.

Most of the exports went to the US, Sri Lanka, Singpore and Malaysia.