Question : FALL IN PRICES OF CHILLI .

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)

(a): The State-wise production of chillies for the years 2002-03 to 2004-05 including that for Karnataka and all-India is shown in the Annexure. During the years 2003-04 to 2005-06, procurement of chillies has been done as shown in the table below:

Year	State Procurement Price Quantity Procured (Rs. per Qtl.) (Metric Tonnes)
2003-04 Andhra Pradesh 2650 30,000
2004-05 Andhra Pradesh 2700 (Premium Quality) 30,000 2500 (Common Quality)
2005-06	Mizoram 2800 1,250

So far, no proposal from any State Government has been received for procurement of chillies under Market Intervention Scheme (MIS) during the current year, i.e., 2006-07.

(b)&(c): Following table shows the average month end wholesale prices of chillies for the years 2003 to 2005 for major producing States/centres:

(Rs./ Quintal)
State and Centre	Average Month end Wholesale Prices	2003 2004 2005
Karnataka
Banglore	4310 4728 2606
Andhra Pradesh
Guntur	4021 3383	2150
Maharashtra
Nagpur	3545 2337	1752
Tamil Nadu
Chennai	3879 3421	2342
West Bengal
Kolkatta	5200 4175	3063

It may be seen from the above table that the average month end wholesale prices of chillies show a declining trend for all the States and centres shown above. The fall in prices during 2005 seems to be due to normal variations in demand and supply of chillies, since production of chillies has fallen only marginally during 2004-05.

(d): Under the Market Intervention Scheme (MIS), the Government of India, on the request of a State/Union Territory Government undertakes procurement of agricultural and horticultural commodities, including chillies. The MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when there is glut in the market and the prices tend to fall below economic levels/ cost of production. Procurement under MIS is made by NAFED as Central agency and by the State designated agencies.