In a significant move to support its agricultural community, the Andhra Pradesh government, in collaboration with the Union government, implemented a Market Intervention Scheme (MIS) recently to address the plummeting prices of red chillies. This initiative, launched on February 25, has proven effective in stabilizing prices and providing much-needed relief to farmers, particularly in the chilli-producing hubs of Rayalaseema, Guntur, and Palnadu.

Prior to the MIS, red chilli prices had crashed from over Rs 28,000 per quintal in the previous season to below Rs 7,000 per quintal, plunging farmers into financial distress. The state government responded by setting a procurement price of Rs 11,781 per quintal, agreeing to purchase up to 25% of the produce, with losses shared equally between the Centre and the state. The impact was swift—within a week, open market prices surged by 15-20%, with some varieties fetching Rs 14,000 per quintal, exceeding the MIS rate.

Market data highlights the scheme’s success. Varieties like 334 and No.5, previously traded at Rs 11,500 per quintal on February 11, rose to Rs 12,500 and Rs 13,000, respectively, post-MIS. The 341 variety climbed from Rs 13,000 to Rs 13,900, while the Teja variant reached Rs 14,000, according to Agriwatch. This rebound has allowed farmers to break even, mitigating losses caused by oversupply and reduced exports to countries like China and Bangladesh.

Interestingly, stakeholders, including farmers and traders, have urged the government to delay full implementation, fearing that price stabilization at Rs 11,781 could cap further gains. As prices continue to rise—now ranging between Rs 500 and Rs 1,000 above the MIS threshold—the scheme remains on standby, ready to activate if prices dip again. This strategic intervention underscores the efficacy of government support in stabilizing agricultural markets, ensuring fair returns for Andhra Pradesh’s chilli farmers while maintaining market equilibrium.