Andhra Pradesh has suggested setting up of statutory regulatory boards for cotton and chilli to the Centre.
In a communication to Prime Minister H D Deve Gowda, state Chief Minister N Chandrababu Naidu suggested that the boards could be on the lines of the existing tobacco/coffee/tea boards with statutory powers to regulate issues like the area on which the crop is to be grown and crop varieties.
Pending a decision by the Centre, the state is setting up a non-statutory regulatory committee for chilli, which will include the commissioner of horticulture and a representative of the spices board as members.
According to official sources, the proposed committee will function on the lines of the tobacco board and advise chilli farmers, traders and exporters.
Besides suggesting the crop size to farmers, the committee will also regulate the arrivals in the market yard and help farmers to procure quality inputs including seeds and pesticides.
The need for a regulatory body for chilli has arisen due to a steep fall in prices in the past two years.
Andhra Pradesh accounts for production of over 3.64 lakh tonnes of chilli every year.
About 2.04 lakh hectares are under the crop, mostly in the districts of Guntur, Warangal and Prakasam.
The introduction of new hybrid varieties has led to a higher per hectare yield which went up from an average of 1,508 kgs/hectare in 1989-90 to over 1,800 kgs/hectare this year. Some of the neighbouring states like Madhya Pradesh and Maharashtra have also stepped up production of chilli in recent years.
According to the president of the Guntur-based Chilli Traders and Commission Agents Association, Kilaru Rosaiah, there has been a three-fold increase in chilli production in Indore in Madhya Pradesh and Nagpur, Malkapur and Nandanbara in Maharashtra this year, thus creating a slump in the market.
Most of the outside markets traditionally serviced by chilli traders from Andhra Pradesh have been captured by the growers from Maharashtra and Madhya Pradesh because of price advantage, said Rosaiah.
The overseas demand for Andhra chilli has also been on the decline following introduction of similar varieties by China. The result is that the price of chilli in the Guntur and Prakasam market yards plummeted to Rs 1,000-Rs 2,000 per quintal this season as against Rs 3,000 per quintal last year.
This has affected chilli growers who had invested their entire savings on the crop on assurance from traders that the market this year would be as good as in previous years.
Market sources said the price is likely to firm up a little in coming weeks as the early summer variety had a high moisture content and hence quoted at a low price. However, the price may not reach last years level of Rs 3,000 a quintal.
