Chilli farmers in Telangana will soon receive financial support under the Market Intervention Scheme (MIS). The Union Agriculture Ministry has approved this move following a request from Union Minister G Kishan Reddy.
This decision brings relief to farmers facing losses due to low market prices for their chilli crops. The new support system, called the Price Deficiency Payment (PDP), ensures that when chilli is sold for less than the cost of cultivation, farmers will still be paid the difference.
On April 4, G Kishan Reddy wrote to Agriculture Minister Shivraj Singh Chouhan, highlighting the struggles of chilli farmers in Telangana. He mentioned that farmers in areas like Khammam, Mahabubabad, Warangal, Hanmakonda, Suryapet, Nagarkurnool, Bhadradri Kothagudem, Jogulamba Gadwala, Jayashankar Bhupalpally, and Mulugu were getting prices far below their costs.
Now, the central government has agreed to cover a major share of the losses. For the 2024–25 financial year, the scheme will apply to 1,72,135 metric tonnes of chilli—about 25% of the total chilli production in Telangana.
Under the plan, farmers will receive the difference between the market rate and the fixed MIS price, which is set at ₹10,374 per quintal. To start the process, the Telangana state government must first deposit this difference into the farmers’ bank accounts. Later, the central government will reimburse 50% of the total cost.
This move comes after reports revealed that middlemen were paying as little as ₹5,000 to ₹6,000 per quintal, causing major losses for farmers. The scheme aims to stop this exploitation and ensure fair income for producers.
However, only farmers who sell their chilli at recognised APMC markets will be eligible for this benefit.
This initiative is part of a larger effort by the central government under Prime Minister Narendra Modi. Along with MIS, the Pradhan Mantri Aaya Suraksha Abhiyan (PM-AASHA) was also launched to protect farmers from sudden price drops in the market.
The combined efforts of these programs are aimed at safeguarding farmers’ incomes, especially in the horticulture sector, and ensuring that chilli growers in Telangana get the support they need.
