Fri Mar 21 01:00:00 UTC 2025: ## Karnataka Chilli Farmers Face Crushing Losses Amidst Price Plunge

**Byadagi, Karnataka, March 21, 2025** – A year after violence erupted at the Byadagi Agricultural Produce Marketing Committee (APMC) yard over plummeting chilli prices, farmers in Karnataka are again grappling with a severe crisis. Record chilli arrivals, coupled with excess stock from previous years, have driven prices down drastically, leaving many facing crippling losses.

The Byadgi chilli, renowned globally for its quality, is fetching significantly lower prices than last year. While the APMC yard itself has remained peaceful this year, sporadic protests have flared up in other parts of the state, including Kalaburagi and Raichur.

On March 20th, 2025, Byadagi saw a massive arrival of 247,196 bags of chillies. The average price for Byadgi Kaddi and Dabbi varieties plummeted to ₹23,359 and ₹25,869 per quintal, respectively, compared to ₹35,099 and ₹38,951 in February 2024. Guntur variety prices also fell sharply to ₹12,209 per quintal from ₹13,509 during the same period. Farmers report incurring losses exceeding ₹1 lakh per person, citing increased costs of seeds, fertilizers, and pesticides.

The situation is exacerbated by a large carry-over stock from the previous two years, estimated at 40% of the total, further depressing prices. Stricter export testing parameters in Western countries, leading to increased rejections, and the preference for cheaper chilli varieties by spice companies, also contribute to the crisis.

The Karnataka government has responded by writing to the Union Agriculture Minister, requesting a market intervention scheme similar to the one implemented in Andhra Pradesh. Chief Minister Siddaramaiah urged for a Minimum Intervention Price (MIP) of ₹13,500 per quintal, citing the high cost of production in Karnataka. Former Chief Minister Basavaraj Bommai also made a similar appeal. Further initiatives are underway including the establishment of a new chilli market in Raichur to reduce transportation costs. However, experts suggest that a long-term solution requires a reduction in chilli production and a shift towards higher-quality yields. The crisis underlines the vulnerability of farmers to market fluctuations and the urgent need for sustainable agricultural practices and supportive government policies.

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