Chilli crisis too hot for the Centre

The Centre will not come to the rescue of chilli farmers in state, who are facing a crisis due to over production and declining prices.

The TS government had written to the Centre on April 1 seeking its intervention to stabilise prices and help farmers. However, the Centre turned down the request.

Marketing minister T. Harish Rao had sought the Centre’s intervention and support in the crisis faced by the State’s chilli farmers due to over production leading to prices crashing.

However, the Centre conveyed to the government that it cannot extend financial assistance to the state since several other states too are facing a similar problem due to over production and it has to bear heavy burden to cover all the states.

Mr Harish Rao had brought to the notice of Centre that chilli output in state went up by 14 per cent this year due to good rains, which resulted in prices dropping down by almost 50 per cent to `5,000 and `6,000 per quintal, as against `10,000 last year.

The estimated production is over 6,98,353 MTs this year in Telangana, leading to a glut in the state.

Mr Harish Rao requested the Centre to extend 50 per cent Central assistance to TS under Market Intervention Fund, which could help the chilli farmers get a reasonable price. The fund infusion is expected to stabilise prices for farmers.

The state government requires over `500 crore to come to the rescue of farmers by ensuring remunerative prices.

“We are already offering `6,000 per quintal to farmers, which is the highest in the country. The government is already bearing a burden of `400 crore on its own.

We want Centre to bear another 50 per cent burden by giving `500 crore,” Mr Harish Rao said.