Lemon growers in Andhra Pradesh, notably in Eluru, West Godavari, and Konaseema, are navigating financial challenges due to the atypical early arrival of the southwest monsoon. The climatic patterns shifted, leading to reduced temperatures and increased precipitation, contributing to a decrease in lemon market demand.
Historically, summer yields restricted lemon supply, driving up prices due to high temperatures and reduced water sources. Prices previously peaked at approximately $1.20 per kg in May, with Eluru's wholesale market listing at about $1.14 per kg as of May 12. Sustained price elevation over 18 months incentivized many farmers to incorporate lemons as an intercrop with coconut plantations.
The premature rains and resultant temperature decline diminished lemon demand, previously high due to use in summer beverages. Additionally, the rains caused an unexpected surge in produce, saturating the market and driving prices to approximately $0.24 per kg by June 1, impacting growers' finances adversely.
A farmer, Thutika Ramarao from Unguturu in Eluru, expressed: "We put in a lot of effort to grow lemons during summer, expecting good returns. But now, while it costs us around $0.152 per kg to harvest and transport, the market price is just $0.24. We are running into losses."
Farmers report alleged manipulation by traders in Eluru's market ecosystem, claiming the formation of cartels to suppress prices, despite lemon exports to various states. They advocate for government intervention to ensure justified pricing, oversight of intermediaries, and direct export facilitation.
Source: Times of India