Mahabubabad’s chilli industry goes places

The Minister took to his Twitter account on Sunday to share the success story, stating that chillies produced in the district account for about 25 per cent of Telangana's total chilli production.

Mahabubabad: Once a backward area in erstwhile Warangal district, Mahabubabad has witnessed remarkable progress across various sectors since the formation of Telangana.

IT and Industries Minister KT Rama Rao, who played a pivotal role in this development, said that the district renowned for being one of the leading chilli-producing regions in the State, with an annual production of approximately 1.5 lakh MT, now proudly houses two major chilli processing units.

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The Minister took to his Twitter account on Sunday to share the success story, stating that chillies produced in the district account for about 25 per cent of Telangana’s total chilli production. The district has gained global recognition for its top-quality chillies.

In order to support and uplift the chilli farmers in the region, the State government took proactive measures to establish two large chilli processing plants in the Mahabubabad district. These plants, with a combined capacity to process 1 lakh MT of chillies per annum, were facilitated by the government through speedy land allotment and incentives for the companies involved.

One of the companies, named ‘Plant Lipids,’ invested Rs.70 crore to establish a unit in Kuravi Mandal, with a daily processing capacity of 150 MT. Another company, Vidya Herbs, invested Rs.50 crore to set up a unit in Maripeda mandal, also with a daily capacity of 150 MT. Plant Lipids has been operational since November 20, 2019.

Furthermore, the success of these units has been substantial, leading to expansion plans. Vidya Herbs has committed to investing more than Rs.150 crore to expand its unit, while Plant Lipids is also planning to increase the capacity of its unit in the near future.

Both companies are engaged in the extraction of oleoresin, and their products are exported to over 85 countries, capturing more than 50 per cent of the global market share for plant-based oleoresins.

The presence of these large processing facilities has significantly stabilized chilli prices and created better opportunities for local farmers to obtain fair prices for their produce. To further support the farmers, direct procurement from farms has been initiated using women Self Help Groups (SHGs). This system enables farmers to sell their produce at their farm gates, eliminating transportation, commission, and other overhead expenses. As a result, farmers have witnessed an increase in income ranging from 10 to 20 per cent. Thus far, Plant Lipids has procured approximately 5,000 MT of chillies worth Rs.100 crore through this system.

The Society for Elimination of Rural Poverty (SERP) is also playing a crucial role in the procurement of chillies by partnering with Plant Lipids Private Limited.

They have signed an agreement to provide up to 20,000 MT of Teja variety chillies, primarily used in vegetable oil production. By eliminating middlemen and exploitative practices, both the farmers and the SHGs have greatly benefited from this arrangement.

Looking ahead, both Plant Lipids and Vidya Herbs have pledged to procure more than 20,000 MT worth Rs.400 crore in the upcoming season, further contributing to the success story of Mahabubabad’s chilli industry, according to Rama Rao.

Sharing a success story of industrialisation in rural Telangana

✳️ Mahbubabad in one of the highest chilli producing districts in Telangana with an annual production of approx. 1.5 lakh MTs (approx. 25% of the total Telangana’s production). Further, the quality of the chilli… pic.twitter.com/Hsvwph0IPR

— KTR (@KTRBRS) July 2, 2023