Farmers in Ramanathapuram district protested on the Madurai-Ramanathapuram National Highway, alleging that local traders were manipulating mundu chilli prices, causing significant financial losses. The farmers accused the traders of forming a "syndicate" to lower the market prices. Police and agricultural officials intervened, promising to address the grievances, leading to the dispersal of the protesting farmers. Chilli, particularly the mundu variety which has received a Geographical Indication (GI) tag, is a major crop in the area, covering over 15,000 hectares.
The farmers expressed their frustration over the falling prices of mundu chillies, with recent auctions showing a drastic drop from Rs 2,700 to Rs 1,100 - 1,700 per 10 kg bag, which does not cover the production and transportation costs. They are demanding a Minimum Support Price (MSP) for chillies to avoid post-harvest losses and ensure fair compensation for their efforts. The cultivation costs for chilli are high, and the fluctuating market prices often result in financial loss for the farmers.
A senior official from the Agriculture Marketing Department countered the farmers' claims, stating that chilli prices have actually improved compared to previous years, with current rates at Rs 170-250 per kilogram. However, the farmers' preference for selling in open markets like Ettivayal, where prices fluctuate based on quality, was cited as a reason for the lower prices experienced on the day of the protest. The official suggested that farmers use the regulated market and the E-NAM facility for better price realization and take advantage of storage facilities to avoid selling during price dips.