Hyderabad: The Union Ministry of Agriculture has set the procurement price for dry chillies in Telangana at Rs 10,374 per quintal under the Market Intervention Scheme (MIS), Union Minister Kishan Reddy stated.
In a press release issued on Thursday, May 8, the minister explained that if farmers are forced to sell their produce in the open market at prices below this benchmark, the central government will compensate them for the difference.
The scheme is particularly significant for major chilli-producing districts in Telangana, including Khammam, Mahabubnagar, Jogulamba Gadwal, Bhadradri Kothagudem, Jayashankar Bhupalpally, Mulugu, Suryapet, Warangal, Hanumakonda, and Nagarkurnool.
Farmers in these regions have been struggling as market prices for chillies have dipped below their cultivation costs.
Minister Kishan Reddy noted that he had written to Union Agriculture minister Shivraj Singh Chouhan on April 4, urging intervention to support chilli growers facing losses.
Responding to this appeal, the Centre has agreed to apply MIS to 25 percent of Telangana’s estimated 2024-25 chilli production, which totals 6,88,540 metric tonnes, Kishan Reddy said.
Under the scheme, the state government will initially deposit the price difference between the market rate and the MIS benchmark directly into farmers’ accounts.
The central government will then reimburse 50 percent of this amount to the state. Both the central and state governments will share the financial burden equally, with each covering 50 percent of the cost.
MIS to apply only to chillies sold through APMCs
The benefits of the MIS will apply only to chillies sold through Agricultural Produce Market Committees (APMCs).
The intervention comes amid reports that some middlemen have been purchasing chillies from farmers at as low as Rs 5,000– Rs 6,000 per quintal, far below the official procurement price, leading to significant farmer distress.
Minister Kishan Reddy urged the state government to ensure that no losses are incurred by chilli farmers and to take proactive measures to protect their interests.
He also stated that the Centre is ready to implement the scheme in Telangana as per MIS guidelines and has formally communicated this to the state government.
Current market prices
Currently, the average market price for dry chillies in Telangana is around Rs 10,766 per quintal, with prices ranging from a low of Rs 5,000 to a high of Rs 15,400 per quintal, depending on the market and chilli grade.
The MIS intervention aims to stabilise prices and provide a safety net for farmers facing volatile market conditions.
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