Guntur West MLA Modugula Venugopala Reddy on Tuesday said the Chilli Price Support Scheme introduced by the State government in May 2017 did not benefit the genuine farmers. The government introduced the scheme at a time when chilli prices plummeted to an all-time low. Under it, the farmers were credited ₹1,500 per quintal above the minimum support price (MSP).
Initiating a discussion during question hour in the Assembly, Mr. Reddy said the scheme failed to achieve the desired result.
Mr. Reddy said 50 lakh quintals of chilli arrived this season. “But the information furnished by the Marketing Department shows that payments have been made in respect of just 15 lakh quintals, which is just 15% of the total production,” Mr. Reddy said.
He said farmers were at the receiving end as there was no mechanism to regulate prices at cold storages.
He also said the delay in launching food processing units at Spices Park was causing substantial loss to the farmers as they were forced to sell the produce at a very low price.
