Following the Union government's initiation of the Market Intervention Scheme (MIS) in Andhra Pradesh due to declining chili prices, markets have observed a price rise, aiding farmers in reaching break-even. The MIS, effective since February 22, aims to stabilize chili prices after they dropped below the trigger price of $142 per quintal.
Market stakeholders have requested a pause in intervention until prices stabilize, fearing that the price cap could hinder further increases. AgriWatch reports minimal changes in open market prices.
Initially, the Union government expanded the MIS loss-sharing scope to 75%, but as of March 3, losses are shared equally between state and Union governments. Varieties like Bedki and Teja saw price increases, while others like Sannam and LCA 334 decreased.
The Union government procures 25% of the 1 million metric tons produced. Andhra Pradesh's 180,000 chili farmers face export challenges and rising costs, with some shifting exports to Chennai due to full storage at Krishnapatnam port.
Source: South First