Chili farmers are experiencing significant disappointment as they face losses from low sales prices. Many have stored their crops in cold storage, hoping for price increases, but current rates are much lower than anticipated. This season saw over 20,000 quintals of chilies produced, yet prices range from Rs. 15,000 to Rs. 19,000, forcing farmers to sell at a loss to cover storage costs.

Farmers had expected better returns after last year's prices reached Rs. 25,000 per quintal, but this year, they have dropped to around Rs. 21,000. As the new season began, planting rates did not improve, leaving farmers in financial trouble after months of cold storage fees.

In Khammam district, there are 48 cold storage units capable of holding nearly 4.7 million chili bags. By early September, around 3 million bags were stored, with a significant portion belonging to farmers. However, some traders have registered these chilies under farmers’ names to avoid scrutiny. Storage fees range from Rs. 150 to Rs. 240 per bag, compounding the financial burden on farmers.

Despite the highest prices reaching Rs. 19,000, most sales are around Rs. 14,000, as traders claim a lack of international orders. This has compelled many farmers to sell at a loss rather than incur additional storage costs. Traders who invested heavily in the crop are also reporting losses of up to Rs. 2,000 per sack.

Hanumantha Rao, a farmer from Chintapalli, shared his experience of leasing four acres and storing 250 bags, initially hoping for Rs. 22,200 per bag. With mounting storage fees of Rs. 50,000, he had to sell some bags for Rs. 18,500 and others for Rs. 17,500, resulting in a total loss of around Rs. 5 lakh.

Additionally, reports indicate widespread corruption in the Khammam agricultural market. Traders, despite buying quality chilies for Rs. 14,000 to Rs. 18,000 per quintal, are misreporting prices as low as Rs. 9,000 in market records. This manipulation has drawn the attention of commercial tax officers, who have previously caught traders falsifying entries. Despite temporary setbacks, this deceptive practice appears to be resurging, with a few traders maintaining control over the market.