Chilli output figure contradicts betweeen Centre and Telangana government
Hyderabad: The Centre is disputing the chilli output figures submitted by the state government. While TS claims seven lakh tonnes of chilli production this year, the Centre’s estimate puts the figure at below three lakh tonnes. If the Centre's figures are considered, the state will not get adequate financial assistance to ensure MSP (minimum support price) for farmers.
The Centre has set stringent norms to extend financial assistance under MIS (market intervention scheme). The state government should purchase only 10 per cent of total output. Last year, chilli fetched Rs 12,000 per quintal for farmers. This year, the price has fallen to less than Rs 3,000 and the state government wants to ensure MSP of Rs 7,000 per tonne, provided the Centre extends financial assistance.
If seven lakh tonnes of chilli production is accepted, then, as per the Centre's norms, TS can buy only 10 per cent of stocks, amounting to 70,000 tonnes for MSP of Rs 7,000 per quintal. For this, the state government needs to sanction nearly Rs 500 crore to the marketing department to purchase chilli stocks from farmers directly. If the state government incurs loss through sale of procured stocks from farmers to wholesalers and others later, as per MIS norms the Centre will bear 50 per cent of this loss.
Even if the state government gives Rs 500 crore to the marketing department now, there is no storage facility in the state to store the chilli stocks purchased from farmers. In case the Centre insists on its figure of three lakh tonnes chilli production, the TS government has to purchase only 30,000 tonnes for MSP as per the Centre's 10 per cent norm. In this case, the state government will not get adequate assistance from the Centre. Hence it is dilly-dallying on taking up chilli purchases from farmers. For this reason, marketing officials in Khammam market yard continue to buy chilli from farmers for between Rs 3,200 and Rs 5,000, depending on quality.
