Incessant rain in the state may have caused damage to the chilli crop, but farmers are in an upbeat mood as they are getting the highest-ever price for their produce.
In the Guntur market, the crop was sold at the highest price of Rs 9,200 a quintal in December for the current season. The market yard received 276,696 quintals with the price ranging from a maximum of Rs 9,200 to a minimum of Rs 3,000 a quintal. In the same month, farmers were paid a maximum of Rs 7,700 a quintal in 2008-09 and 2009-10 seasons.
Among the last three seasons, 2009-10 saw a record of 2.98 million quintals arriving at the Guntur market as against 2.75 million quintals in the 2008-09 season. The Agricultural Market Committee expects the same quantity as 2009-10 this season due to lower output. The market had already received 2.25 million quintals till December.
“Rain has played a spoilsport. Most of the crop is either totally damaged or discoloured with high level or moisture,” said Agricultural Market Committee Secretary V Harinarayana Rao.
The current season, which started in April 2010, saw the prices going up to Rs 5,800. They declined to Rs 5,500 in May, rose again to Rs 6,400 in June and remained at Rs 6,500 in July and August. The price again went up to Rs 7,700 in November and settled at Rs 9,200 in December.
Besides the incessant rain witnessed in Andhra, Madhya Pradesh and Karnataka, low yield in Andhra was also due to farmers shifting from chilli to cotton. This change led to 40 to 45 per cent decline in the yield in the state.
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Moreover, increased export demand from the US, Canada, Singapore, Malaysia, Pakistan, Bangladesh and Sri Lanka made traders bid higher prices for the commodity in the season.
“The fall in output made big players increase the price. The impact of exports is also a reason,” said Guntur-based trader and exporter Kilaru Rosaiah. And this has benefited the farmers, he added.