Credit: Special Arrangement
Hubballi: Red chilli had literally become ‘red gold’ fetching the highest price ever, crossing Rs 70,000 per quintal, in the initial months of market arrivals last year.
But the situation is totally different this time and many growers of the famous ‘Byadgi chilli’ are not getting even half the rates that prevailed in the first couple of months last season.
Prices have plummeted with a portion of last year’s stock remaining unsold and due to large arrivals this year.
Also, there are quality issues with rain causing crop disease, which resulted in sub-standard produce.
The Byadgi variety is mainly grown in Dharwad, Haveri and Gadag districts.
Byadgi town, Hubballi and Gadag are the major markets for the dry red chilli.
At the Byadgi market, violence had taken place in March last year, during the protest against the sudden crash in prices. Byadgi, the largest dry chilli market, has received 3.61 lakh quintals of the variety since December 1 this season.
The prices range from Rs 2,569 to Rs 45,299 for Dabbi variety. It is in the range of Rs 959 to Rs 39,999 for Kaddi variety.
In the same period last season, the maximum price was Rs 70,080, with the arrival of 3.26 lakh quintals.
Rains cause crop disease
“Due to incessant rains this time, diseases hit the crop and the yield of good quality chilli was very less. We sold a kg for Rs 600 last time. It is only Rs 300 now,” laments Fakirappa Kotagi from Pashupatihal village in Kundgol taluk.
Vijay Gadagi of Ron in Gadag taluk feels it is no use taking the produce to the market.
“We had to spend around Rs 60,000 per acre of the crop, while the yield is only up to four quintals per acre. Big farmers are better off as they can keep the produce in cold storage and wait for the prices to rise,” he said.
Less demand from major buyers is the other reason for low prices this time.
Uncleared stocks
Chilli trader Basavaraj Yakalaspur of Hubballi APMC said big companies still had uncleared stocks, due to which they were not purchasing large quantities.
“Over one lakh quintals of chilli kept by merchants and farmers in cold storage after prices plummeted in the second half of last season remain unsold. The quality of fresh arrivals this time is not good. Major masala companies are also hesitating to buy this time,” said Basavaraj Hariyalad, a chilli trader at Byadgi.
Agrometeorologist R H Patil said though rains did not affect the yield, it resulted in crop disease at several places, bringing down the yield of good quality chilli.