Andhra Pradesh's Timely Intervention Revives Red Chilli Market

The Andhra Pradesh government's market intervention scheme, initiated to counter declining red chilli prices, successfully stabilized rates, benefiting farmers in distress. By setting a procurement price and collaborating with the Centre, prices rebounded by 15-20%. This highlights effective government action in stabilizing agricultural markets.

In a bid to address plummeting red chilli prices, the Andhra Pradesh government, in collaboration with the Union government, rolled out the Market Intervention Scheme (MIS) to stabilize the market. The initiative successfully brought relief to farmers across regions like Rayalaseema and Guntur, where prices had sharply declined.

The scheme set a procurement price of Rs 11,781 per quintal, with the government agreeing to acquire up to 25% of the produce. The intervention led to market prices rising by 15-20% within just a week, as traders willingly offered higher prices, with some surpassing the procurement rate due to anticipated further price hikes.

Stakeholders, acknowledging the positive effects of MIS, noted that the timely government intervention effectively mitigated potential losses and stabilized the market. The successful stabilization showcases the vital role of government measures in managing agricultural price fluctuations and ensuring fair compensation for farmers.

(With inputs from agencies.)