Telangana: SERP sets target to procure 20,000 MTs of red chilli

The procurement of red chilli would be taken up from the end of January next year and it will continue till April.

Hyderabad: Buoyed with the success of procuring 2,140 Metric tonnes of Teja variety red chilli in Khammam district early this year and helping Self Help Groups (SHGs) reap good profits, Society for Elimination of Rural Poverty (SERP) has now set a target to procure 20,000 MTs in six more districts next season.

To this effect, SERP signed a pact with Plant Lipids Private Limited here on Tuesday. Impressed with the earnings, farmers in Khammam, Mahabubabad, Warangal, Jangaon, Suryapet and Bhadradri Kothagudem have taken up extensive cultivation of Teja variety red chilli.

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The procurement of these chillies would be taken up from the end of January next year and it will continue till April.

In February this year, Benishan, a State-level federation, procured 2,140 MTs of Teja variety red chilli from farmers through three Farmer Producer Companies (FPCs) operated by SHGs from Khammam district.

In a span of 55 days, the procurement was completed and about Rs.40 crores turnover was generated. “We earned a commission of Rs.63 lakh and after deducting expenditure, we made a clear profit of nearly Rs.40 lakh,” FPC president Swarna Krishnaveni said.

Rajeshwari, a Chilly farmer from Khammam, said initially there were a few apprehensions over selling the produce to SHGs. But payments were received within 48 hours and more importantly, stocks were procured from villages, facilitating in reduction of transport costs, she said, adding that she earned Rs.2 lakh profits per acre.

After signing the pact, Panchayat raj and Rural Development Secretary Sandeep Kumar Sultania said procurement of 20,000 MTs would be taken up with the assistance of eight FPCs.

“In this regard, 20 to 25 Village Level Procurement Centres will be set up in the six districts. We have set a target to make Rs.200 crore business next season and eventually SHGs will reap good profits,” said Sandeep Kumar Sultania.

Take up chilli and other crops, Errabelli to farmers

Panchayatraj and Rural Development Minister Errabelli Dayakar Rao said before joining politics, he had cultivated chillies in 10 acres and incurred huge losses. This was mainly due to water scarcity and other factors like pest attack.

Undeterred, next season, the Minister cultivated chillies again and this time too incurred loss due to low price for the yield.

Back then, there was no support, especially in terms of procurement and measures to increase the yield. But things have changed now, companies were procuring the produce from farmers directly, doing away with the role of agents, he said while appreciating the SHG women for earning good profits.

“Considering the profits, I have decided to cultivate chillies again,” said Dayakar Rao. He appealed farmers to take up chilli and other crops, pointing out that Central Government was creating hurdles in paddy procurement every season.