Telangana farmers agitated over sharp decline in crop prices, switch to protest mode

Enmeshed in web of severe financial distress, farmers — especially those growing groundnut, chilli and red gram crops — are organising widespread demonstrations

Hyderabad: The plight of farmers, especially those growing groundnut, chilli and red gram crops, in the State highlights the vulnerabilities faced by the agricultural community.

Tensions are mounting as they intensify their protests over the sharp decline in prices. Enmeshed in a web of severe financial distress, in the absence of support due for them under different heads, including Rythu Bharosa and the prevailing price mechanism far from being remunerative, the farmers are on protest mode organising widespread demonstrations.

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While market dynamics play their part in determining prices, the crucial support expected from the Telangana government in ensuring fair pricing and efficient procurement is missing.

As February unfolds, the fate of farmers growing key crops hangs in the balance, with thousands of them anxiously awaiting solutions to their escalating problems. Dharnas and demonstrations continued for the second day on Wednesday in Mahabubnagar where they ventured to stop even trains on Tuesday.

Groundnut farmers are in fact facing a severe crisis as prices have plummeted. Currently trading between Rs 5,600 and Rs 6,050 a quintal, groundnut prices are considerably below the Minimum Support Price (MSP) of Rs 6,783 per quintal. The surplus production in recent seasons, coupled with declining export demand, has resulted in an oversupply, causing prices to drop drastically.

Farmers who rely on groundnut as a primary source of income are particularly hard-hit, finding it increasingly difficult to cover their rising costs of cultivation. As the cost of seed, fertilizer and labour has soared, the financial strain on groundnut farmers has intensified.

Groundnut has been sown in around 22,107 acres in the State as on September 25, 2024. Among the districts, Gadwal stood first in the groundnut-sown area with 10,752 acres, followed by Wanaparthy (7,241 acres), Warangal (1,194 acres), Nagarkurnool (376 acres) and Suryapet (286 acres).

The MSP for groundnut has been increased by Rs 406-6,783 per quintal for the 2024-25 marketing season from Rs 6,377 per quintal in 2023-24. But they continued to fetch much less.

Frustration of red gram farmers

Red gram, another staple crop, has not fared any better. The prices of red gram are currently fluctuating between Rs 6,429 and Rs 7,272 per quintal. Market instability and inefficiencies in procurement processes have contributed to the drastic price variations.

Farmers are disheartened as they see their expected earnings diminish, despite their hard work and investment. They have been vocal in their demands for the government to step in and stabilise the market, ensuring fair prices for their produce.

The continuation of this trend could result in long-term impacts on the red gram cultivation in the region, as farmers might shift to other crops or leave farming altogether. The area under red gram reported during 2024-25 was 4.99 lakh acres as against the all-India crop area of 114.90 lakh acres. It was 100.67 lakh acres during the previous year.

The chilli market has also seen significant price drops, trading between Rs 14,500 and Rs 16,500 per quintal. Unlike the groundnut and red gram, the chilli crop faces challenges from adverse weather conditions and pest attacks, which have reduced yields and affected quality.

Despite the strong export demand from China, the local market dynamics, including high moisture content and other quality concerns, have led traders to offer lower prices. Farmers cultivating the Teja variety of chilli, which has substantial export demand, are particularly worried as their expectations of high returns have been dashed.

The newly arrived Teja variety at the Warangal spot market is currently trading in the range of Rs 13,000-16,000 per quintal. Around 1,600 bags of new arrivals were reported at the Khammam spot market, which traded around Rs 12,000-16,000 per quintal on Wednesday as against Rs 20,000 per quintal fetched last year.