Chilli Crisis: Prices Plunge by 60%, Leaving Ramanathapuram Farmers in Distress

In Tamil Nadu's Ramanathapuram district, chilli farmers are going through a grave financial crisis as prices of dried chillies have fallen by 60% to 70% in the local market. The sharp fall is due to a fungus infection that hit the crops after December rains, which submerged around 9,000 hectares of land. Even after replanting in January, the fungus infection in March further worsened the situation, causing heavy post-harvest losses.

 

The Ramanathapuram mundu and samba chilli types, which are grown on more than 11,000 hectares of land, are the worst hit. The price of chillies generally varies from Rs 2,500 to Rs 2,700 for 10 kg, but it has collapsed to Rs 800 to Rs 1,200 per 10 kg. The price decline, coupled with higher cultivation expenses as well as logistics costs, has left farmers in a predicament to recover their investments.

 

Farmers have appealed to the government to grant compensation for loss of crops and introduce a Minimum Support Price (MSP) for chillies to counteract these financial difficulties. Officials recommended the use of regulated markets and godowns to enhance pricing and curb losses.

 

Source: The New Indian Express