The Union government, concerned over the sharp fall in chilli prices, has embarked upon a scheme to step up value-added products of the commodity.
Sources in the commerce ministry told PTI that that this step would not only help in bolstering domestic market but also encourage exports, particularly when the country is experiencing negative export growth in recent years. The immediate plan was to promote manufacture of chilly powder and pastes, which were in great demand. With urbanisation the demand for red chilli was declining as consumers preferred instant and ready-made derivatives of the products, whichgovernment fears, was one of the reasons for sharp decline in prices.