W11 Chili Pepper Update: Farmers in Karnataka Protest Plummeting Red Chili Prices, Byadagi Chili Cultivation Hits New Heights

Farmers in Karnataka, India, Express Frustration Over Plummeting Red Chili Prices

Farmers in Karnataka, India, are expressing frustration over the drastic drop in the price of red chili, leading to unrest in the Byadagi chili market. This turmoil escalated as approximately 310 thousand bags, weighing 30 kilograms (kg) each, were supplied to the market on March 11, significantly reducing red chili prices. Cultivated in Haveri district, Byadagi chili is renowned for its low pungency and vibrant color, having been granted a Geographical Indication (GI) tag. However, most of the arrivals in the market were hybrids of Byadagi chili, which were of inferior quality, contributing to the price decline due to insufficient demand.

Karnataka's Home Minister reported that prices plummeted from USD 240.63/100 kg to USD 96.25/100 kg in a single day, sparking unrest in the Haveri APMC market. Investigations are ongoing to determine if the price decline occurred uniformly across all APMC markets or only in Haveri. Despite favorable weather conditions and a robust crop yield, the expansion of cultivation areas and drought in certain regions has resulted in a surplus of red chili production, thereby depressing prices and disappointing farmers.

In 2023, prices for high-quality original Byadagi chilies soared to unprecedented levels, surpassing USD 601.56/100 kg due to a smaller crop size. Encouraged by the lucrative prices seen in the previous season, farmers have expanded their cultivation areas this year. However, the surplus carry-forward stock from last year has influenced prices in the current season. The cold storage capacity in Karnataka is approximately 8 million bags, with an estimated carry-forward stock of 2.5 to 3 million bags, each weighing 30 kg, at the beginning of this season. This surplus from the previous season has impacted the market dynamics, influencing the pricing structure for Byadagi chilies this year.

Overview of Chili Cultivation in Bogra's Sariakandi During Winter Season

According to the Agriculture Extension Department, chili cultivation during the winter season has been undertaken on 5.71 thousand hectares (ha) of land in Bogra's Sariakandi, Bangladesh. Among these, 2.05 thousand ha have been dedicated to indigenous pepper varieties, while hybrid varieties occupy 3.66 thousand ha of land. Notably, approximately 60% of the total pepper cultivation in the district is in the Char area of the Yamuna in Sariakandi Upazila. The second-largest pepper plantation is in Sonatala, another upazila situated along the banks of the Yamuna. Additionally, chilis were cultivated in Gabtali and Dhunat upazilas. In Sariakandi alone, farmers have cultivated pepper on 3.31 thousand ha of land, with hybrid varieties covering 2.15 thousand ha and local varieties occupying 1.16 thousand ha.