Hyderabad: Following intervention by Union minister G. Kishan Reddy, the Union ministry of agriculture has approved crucial support for chilli farmers in Telangana under the price deficiency payment (PDP) component of the market intervention scheme (MIS) during the ongoing Rabi season.
The initiative is aimed at protecting farmers who are being forced to sell their produce below the cost of cultivation. By bridging the price gap, the scheme will ensure that farmers do not incur financial losses. The ministry has confirmed that MIS guidelines will be followed and has directed the Telangana Agriculture Department to take necessary steps for immediate implementation.
Kishan Reddy had urged Union minister for agriculture Shivraj Singh Chouhan to intervene, citing distress among farmers in several chilli-growing districts, including Khammam, Mahabubabad, Jogulamba Gadwal, Bhadradri Kothagudem, Jayashankar Bhupalpally, Mulugu, Suryapet, Warangal, Hanamkonda and Nagarkurnool. He highlighted that farmers in these districts are cultivating chillies on a large scale but are being forced to sell at prices far below input costs in the open market.
In response, the ministry announced that under MIS for the 2024–25 financial year, 1,72,135 metric tonnes—25 per cent of Telangana’s estimated total chilli production of 6,88,540 metric tonnes—will be covered. Farmers will be compensated for the difference between the market price and the cost of cultivation. The MIS support price for chillies has been fixed at Rs.10,374 per quintal.
Initially, the Telangana government must deposit the difference amount into the bank accounts of farmers. This will be reimbursed by the Centre, with both governments sharing the financial burden equally in a 50:50 ratio.
The Centre took action after Kishan Reddy received reports that chilli farmers were being exploited by middlemen, who were purchasing their produce at extremely low rates—between Rs.5,000 and Rs.6,000 per quintal. He pointed out the failure of state agriculture and marketing officials to protect farmers from such exploitation or to act against the middlemen involved.