Chilli Farmers in Gadag Struggle with Price Drop and Quality Issues

In Gadag district, north Karnataka, a surplus chilli crop last year caused prices to plummet, prompting farmers to store their produce to avoid losses. However, over the past five to six months, stored red chillies in farmers’ homes and air-conditioned warehouses have begun to degrade, turning black due to prolonged storage. This deterioration has compounded the financial woes of farmers already burdened by falling prices and economic stress.

The district, traditionally known for green gram cultivation, shifted to red chilli farming due to poor rainfall last year. This shift, combined with expanded chilli cultivation in neighboring regions like Andhra Pradesh and districts within Karnataka, led to an oversupply and subsequent price decline in local markets, including Hubballi, Byadgi, and Gadag.

Initially, farmers received promising prices ranging from ₹40,000 to ₹45,000 per quintal. However, prices drastically dropped to ₹8,000–₹10,000 per quintal by February, disappointing farmers who had hoped for a recovery.

The situation worsened for farmers who stored their unsold chillies in privately owned cold storage facilities in Gadag-Betageri, where high rental costs of ₹30 per bag per month became unsustainable amid the price crash. Many farmers, unable to afford these costs, now face the dilemma of selling their deteriorating chillies at significantly reduced prices.

With the onset of the monsoon exacerbating conditions, leaks and humidity in storage have accelerated the degradation of chillies stored at home. This predicament has left farmers grappling with increased financial strain and uncertain market prospects.