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Amid sharp drop in prices, Centre to support red chilli farmers in Andhra

Feb 22, 2025 07:20 AM IST

Rammohan Naidu said he had requested the Centre to announce a minimum support price of ₹11,600 per quintal for chilli

With the fall in prices of red chillis in Andhra Pradesh from 28,000 per quintal last year to less than 7,000 per quintal in the current season, the central government on Friday stepped in to provide financial support to the farmers under the market intervention scheme.

The Andhra Pradesh government requested the Centre to give a MSP of <span class='webrupee'>₹</span>11,600 per quintal for chilli. (Shutterstock)
The Andhra Pradesh government requested the Centre to give a MSP of 11,600 per quintal for chilli. (Shutterstock)

Union agriculture minister Shivraj Singh Chouhan on Friday held a meeting with his cabinet colleagues from Andhra Pradesh - K Rammohan Naidu and Pemmasani Chandrasekhar - in the presence of department officials to sort out the issue in the wake of protest from the farmers for not announcing a minimum support price (MSP) for chillis this year.

Speaking to reporters in New Delhi after the meeting, Chouhan said the Centre would extend financial support to red chilli farmers of Andhra Pradesh state under the market intervention scheme (MIS) and a decision will be taken soon in this regard.

“The Centre is also making efforts to boost exports of red chilli. The difference between market prices and production costs will also be reviewed,” he said.

Rammohan Naidu said he had requested the Centre to announce a minimum support price (MSP) of 11,600 per quintal for chilli. “We discussed chilli exports and the need to create an international market for Andhra Pradesh’s chilli,” he said.

“We emphasised the struggles faced by chilli farmers in Andhra Pradesh, particularly in the Rayalaseema, Guntur, and Palnadu districts. The government will take all necessary steps to benefit these farmers,” he said.

During his visit to New Delhi on Thursday, chief minister N Chandrababu Naidu took up the matter with Chouhan and sought assistance from the Centre. He said he had discussed the sharp drop in chilli prices with the Centre, pointing to reduced global demand as the main factor.

Naidu told reporters that while farmers previously secured better rates due to high international demand, the current market downturn has led to a significant price fall. He explained that farmers had earlier received better prices due to high demand, but the market slowdown has now led to a decline.

He stated that while the state aims to procure 1.2 million metric tonnes of chilli this year, only four lakh metric tonnes have been purchased so far. He reassured farmers that all concerns had been conveyed to the Centre.

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