With prices high, cultivators to increase sowing area for growing chilli

KOCHI: Spurred by the sharp rise in prices, chilli growers in Andhra Pradesh, where it is cultivated the most, are planning to increase the sowing area for the next crop. Premium quality chillies now fetch Rs 150 per kg, the highest ever in its history. “Farmers were initially planning a 30% increase in acreage, which is expected to begin in July after the monsoon sets in,” said Ravipati Peraiah, MD of Vijayakrishna Spice Farm.

The shortfall in harvested crop and rising demand from overseas, particularly China, have raised the price of chilli to a new peak. Chilli is the largest exported spice from India. Earlier, it was expected that the deficient rains will push down output by 25% to 30%. But the final estimate after the harvest was that crop will be short only by 15%.

“In Guntur, cold storages would have 50 lakh bags (each bag of 35-40 kg) while there will be another 70 lakh bags from other centres of Andhra Pradesh. If the monsoon is good as the reports say, then prices may come down,” said Venkat Rosaiah, president of Guntur Chilli Commission Agents Association.

Current prices range from Rs 120-150 per kg depending on the quality. This is 40-50% higher from a year ago. Unless monsoon is good, the current price level may last till the first crop from Madhya Pradesh arrives.