Cashew and pepper farmers in Kerala are currently facing significant economic challenges due to a drastic drop in the market prices of their crops. Over just one week, the price of pepper plummeted from Rs 640 to Rs 510 per kilogram. Similarly, cashew prices also saw a considerable decline, falling from Rs 124 to Rs 100 per kilogram.
The primary factors contributing to this steep price decline are believed to be an overproduction of these crops and a corresponding lack of domestic consumption. This sudden drop in prices has brought to the forefront the issue of the lack of a Minimum Support Price (MSP) for these crops. This issue is particularly relevant in light of ongoing farmer protests demanding a legal guarantee of MSP for all crops from the union government.
In January, the price range for pepper was between Rs 600 to Rs 640, depending on the quality of the crop. However, the current rates across different regions of the state have now fallen to a range of Rs 485 to Rs 525. A notable example of this decline is seen in the Wayanad variety of pepper, which experienced a significant reduction of Rs 3,000 per quintal within a week. Farmers attribute part of this challenge to climate change, which they claim is affecting the density-based (litre weight) sourcing of pepper.
The situation for cashew cultivators is further exacerbated by the increased availability of cashews in the market, a common occurrence in the industry. However, this could potentially be addressed if the government were to intervene and procure the crop. Unfortunately, there has been a lack of proactive government action in setting an MSP for cashew, leaving farmers in a precarious position.