Higher price realisations have prompted Andhra Pradesh chilli farmers to increase acreage for production, said industry officials. | |
| Area under chilli cultivation in the country's largest chilli producing state is seen up 35-40 per cent in 2006 from a year ago. |
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| "This year, the farmers got good price for their produce. This has prompted them to increase the acreage for chilli," said Kilari Rossiah, president, Guntur Chilli Merchant's Association1. |
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| Chilli prices have been skyrocketing since September 2005 owing to low produce and good export enquiries from Bangladesh and Sri Lanka. |
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| On an average, in 2005-06 (August-May) chilli prices in Andhra Pradesh have risen to Rs 5,000 per 100 kg. |
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| "Even after the state government's repeated advice to farmers to cut the chilli area, they still seem to grow more of it," Rossiah said. |
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| In 2004, there was a bumper chilli crop, which led to huge financial loss to the farmers. |
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| Traders in Guntur, the chilli hub of the country, said sowing of the spice was a very expensive affair as the cost of raw materials and other inputs were very high. |
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| On an average, a farmer needs to spend around Rs 40,000 per acre. |
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| The Andhra Pradesh government had hence intervened and asked farmers to switch to other cash crops""cotton, castor seeds, among others. |
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| However, good price realisations have diverted farmers' attention back to chillies, they said. |
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| "Based on the survey conducted by the traders, there will definitely be a 25 per cent jump in the area. However, anything more than that would depend on the arrival of the monsoon," Rossiah said. |
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| After Indian Meteorological Department's reports that rains have lashed the Telengana region Of Andhra Pradesh, scientists have recommended farmers to begin sowing. |
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| "During July, we get more rains than any other month. Even if there is a dry spell in Guntur region for a week or so, it will not affect the chilli crop in Andhra Pradesh. This is definitely the best time for sowing chillies," said H P Das, director, Agricultural Meteorology Division of India Meteorological Department. |
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| Traders said farmers could increase the sowing if they were blessed with more-than-normal rains. |
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| "If rains help the farmers we could see a 40 per cent increase in acreage, compared with the estimated 25 per cent," Rossiah said. |
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| Last year, around 30,000-40,000 hectare of land was bought under cultivation and the total production was 4-4.5 million bags (1 bag=40-45 kilogram), traders said. |
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| This year, around 50,000 hectare is likely to be brought under cultivation, they said. |
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| However, the expected higher production of chillies might not dent the prices as analysts feel that in the long-term prices could surge backed by good export demand. |
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| "There are certain quality issues of Chinese crop, which will attract buyers to India," said Vinayak N V, analyst, Karvy Commtrade. |
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| China is India's key competitor and the crop from China arrives by November. |
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