Chilli price likely to touch Rs 6000/qt by May-end

The year 2006-07 that began on a positive note for chilli farmers is continuing. Farmers received the highest price of Rs 5,000 per quintal and the lowest of Rs 2,300 during the first week of May.

In April, farmers earned the highest price of Rs 5,900 per quintal and the lowest price of Rs 2,500 per quintal. According to M Sivaramaiah, selection grade secretary of the government market yard here, the highest price is expected to touch Rs 6,000 per quintal by the end of May or in June.

The year 2004-05 and 2005-06 were drought years for remunerative prices and farmers incurred heavy losses.

In April 2005-06, farmers had no option but to accept Rs 1,200 per quintal and Rs 2,511 per quintal as lowest and highest prices respectively. In 2003-04, they were desperate to take just Rs 1,300 and Rs 2,300 as lowest and highest prices respectively.

The highest mirchi prices for January, February and March (2005-06) per quintal were recorded at Rs 3,600, Rs 3,800 and Rs 4,500 per quintal respectively. Came April, futures trading in mirchi in the two commodities exchanges ( MCX and NCDEX) climbed up steadily following which mirchi prices touched the highest of Rs 5,900 per quintal, bringing cheers into the lives of farmers.

Sivaramaiah said that in April this year, traders purchased 45,46,657 quintals of mirchi at the yard and till May 6, farmers sold 7,58,182 quintals. In 2005-06 financial, 37,96,557 quintal chillies were traded at the yard as against 43,43,753 quintals in 2004-05 and 23,15,817 quintals in 2003-04.

He said that as crop area and harvest volume came down, there had been a sudden climb in prices. The crop was grown in about 1 lakh acres in 2005-06 as against 1,37,500 acres in 2004-05. Besides, mirchi crop in Maharashtra, Uttar Pradesh, Tamil Nadu and Madhya Pradesh and other states had failed.

Futures of popular mirchi 334 variety for June had been recorded at Rs 6,000 in the Multi Commodities Exchange.

A majority of Andhra farmers grew this variety. Consequently, AP traders received big orders from their customers in Maharashtra, Bihar, UP, TN and MP.

The month-wise mirchi sales in 2005-06 were: April (2005): 2,39,738 quintals, May: 1,33,981 quintals, June: 2,83,139 quintal, July: 3,23,798 quintals, August: 3,17,324 quintal, September: 2,94,475 quintal, October: 2,85,691 quintal, November: 3,65,784 quintal, December: 401,127 quintals, January: 2,77,516 quintal, February: 4,23,646 quintal, and March: 4,50,341 quintal.

K Rosaiah, president of Wholesale Chillies Merchants' Association, said mirchi crop area had come down to 60 per cent in the country. Owing to commodities exchanges, mirchi prices went up by Rs 1,000-plus per quintal. The income of farmers touched Rs 50,000 per acre.