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Bumper Crop, Quality Woes Lead to Unrest in Byadagi Chilli Market


The Byadagi chilli market in Central Karnataka experienced protests following a crash in prices due to high arrivals of around 310,000 bags (each 30 kg) on a single day, typical for the peak season of February-March-April. The drop in prices for certain hybrids, attributed to quality issues, led to unrest among farmers. Modal prices for Byadagi chillies have seen a downward trend this year, with the Dabbi variety decreasing from ₹44,000 per quintal in December 2022 to ₹35,000 by March 5, 2024, and the Kaddi variety falling from ₹43,000 to ₹31,500. Hybrids are priced between ₹12,000 and ₹15,000, depending on quality, significantly influenced by the second and third pickings' inferior quality. Last year's unusually high prices, exceeding ₹50,000 per quintal due to reduced production from excess rains and pest attacks, contrast with this year's realistic prices and the existence of an estimated 25-30 lakh bags of Byadagi chilli in cold storage, further impacting current market prices. The expansion in chilli cultivation areas this year has not been met with supportive market prices, despite increased cultivation costs. Red chilli does not have a minimum support price, and Karnataka had over 106,000 hectares under red chilli cultivation with a production of over 167,000 tonnes in the 2022-23 season, predominantly of the Byadagi variety and its hybrids. Following the disruptions, prices marginally increased by ₹5-10 per kg after tendering resumed, with stakeholders focusing on managing market arrivals amidst the larger crop still to be marketed.

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