Siddaramaiah writes to PM Modi, Agriculture Minister Shivraj Singh Chouhan on red chilli price crash in Karnataka

Bengaluru: Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi and Union Agriculture Minister Shivraj Singh Chouhan requesting for implementation of price deficiency payment scheme under Market Intervention Scheme for red chillies in Karnataka.

In the letter, he expressed deep concern for the lakhs of red chilli farmers in Karnataka, particularly in the Kalyana Karnataka region, who are facing an "unprecedented crisis" due to the drastic fall in market prices.

The Chief Minister noted that the Government of India has approved the Price Deficiency Payment (PDP) scheme under the Market Intervention Scheme (MIS) for Red Chillies (Guntur Variety) in Andhra Pradesh, fixing the Minimum Intervention Price (MIP) at Rs 11,781 per quintal with coverage for up to 25 per cent of production.

"While this is a welcome step, the distress faced by Karnataka's red chilli farmers remains unaddressed," he stated in the letter dated March 10.

Siddaramaiah highlighted that in Karnataka, the cost of production for Guntur variety of red chillies (Rain fed) has been assessed at Rs 12,675 per quintal by the Karnataka Agricultural Price Commission.

"However, farmers are forced to sell their produce at distress prices as low as Rs 8,300 per quintal in markets like Sindhanur. This not only results in massive financial losses but also threatens their very survival," he said.

The Chief Minister emphasised that the Kalyana Karnataka region, one of the most backward and drought-prone areas in the country, is home to thousands of small and marginal farmers dependent on red chilli cultivation.

"The continued neglect of their plight will only deepen the economic distress and push many farmers into a debt crisis. It is therefore imperative that the Union Government extends the Price Deficiency Payment scheme under the Market Intervention Scheme to Karnataka, ensuring parity with Andhra Pradesh," he said.

In addition, Siddaramaiah strongly urged certain modification to the existing scheme to better serve farmers.

The CM urged the Centre to increase MIP to Rs 13,500 per quintal.

"The current MIP of Rs 11,781 per quintal is inadequate considering the rising input costs and the significantly higher cost of production in Karnataka," he said.

"Expand coverage to at least 75 per cent of production. Restricting the coverage to just 25 per cent of production will leave a large number of farmers unprotected. A minimum of 75 per cent coverage is necessary to provide meaningful relief," he said.

Siddaramaiah urged the Union Government to bear the full burden of the price deficiency payment.

According to him, As per the existing scheme, the financial burden is shared between the Centre and State in a 50:50 ratio. The prices of red chillies are largely dependent on the Union Government's domestic and export policies which directly influence market stability and farmer earnings.

"Therefore, we request the Union Government to bear the full amount of the price deficiency payment to ensure fair compensation for farmers," he said.

Siddaramaiah said the red chilli farmers of Karnataka deserve the same level of support that their counterparts in Andhra Pradesh are receiving.

"A fair and just intervention by the Union Government at this crucial moment will not only provide immediate relief but will also reaffirm the Centre's commitment to the welfare of farmers across the country, irrespective of the state they belong to," he added.