THE area under chilli cultivation in Sindh is likely to record a significant increase this year, as indicated by the near-completion of its sowing in the province. Irrigation water flows enabled growers to sow the crop at the right time.

Many farmers have grown chilli as a single crop, while some have gone for inter-cropping, especially with banana, to cut their cost of production. Coupled with banana, chilli is seen as an alternative to sugarcane.

Chilli is being grown in areas like Tando Allahyar, which are better known for sugarcane and cotton. Some farmers normally cultivate cotton in during the kharif season and sugarcane in rabi.

A collection centre is planned to be set up this year in Kunri for online trading. Only a nominal amount will be charged from farmers for handling their crop

Low sugarcane and cotton prices have also encouraged some growers to go for cultivating a hybrid of green chillies and conventional longi chillies, which fetch better returns.

A confident Mian Saleem of Red Chilliies Growers Association says the cultivation of chillies has almost doubled from last year. He attributes the increase to factors like better returns last season, adoption of good agriculture practices by farmers and support from the private sector.

Last year’s rate of Rs7,500 per 40kg, against Rs4,000-Rs4,200 in 2013, was due to lower acreage and production in 2013.

Another reason for the higher chilli cultivation is its inter-cropping with banana crop. There is a rising trend among big farmers to grow banana in lieu of sugarcane in Tando Allahyar and Mirpurkhas. While banana stays in the field, the farmers harvest and sell chillies.

Dr Zulfiqar Yosufani has grown a hybrid variety of chillies in Tando Allahyar for the third year. He says the area under chilli cultivation has considerably increased in Tando Allahyar, where every second or third farm is growing the crop.

The hybrid variety yields 200 to 300 maunds per acre, but its price varies between Rs1,700-2,000 per 40kg initially and then drops to Rs700, he says. As cash continues to come in for five to six months of the chilli season, it is considered a big support for farmers.

But the middlemen are a big problem for growers. They unfairly reduce payments against the provision of bags or labour expenses. Some even delay payments.

To help reduce these issues, a not-for-profit organisation is assisting chilli growers adopt good agricultural practices and facilitating them with online trading from Kunri’s market. A collection centre is planned to be established this year in Kunri for online trading. Only a nominal amount will be charged from farmers for handling the crop.

According to Shahjehan Hashwani, who is working with the Pakistan Agricultural Coalition — an umbrella of various agriculture organisations — the crop’s quality and other specifications would be assessed at the collection centre.

“Specifications after independent assessment will be uploaded on the Pakistan Mercantile Exchange’s website to find buyers online directly,” he informs.

With better farming practices, farmer use green nets to overcome the aflatoxin issue in the crop.

The sellers and buyers are currently being registered so that when the crop gets ready for harvest in September, the trading linkage would already have been established. According to Hashwani, close to 100,000 acres have been are brought under chilli cultivation in Umerkot district alone. His assessment is based on dialogue with farmers and market sources.

Worried about a crash in prices because of the expected surplus, the growers hope that exports of the crop would pick up. Longi chilli is most sought after in foreign markets because of its flavour, while food processing companies make direct purchases.

For export purposes, farmers are banking on the private sector’s online trading initiative to get them a premium for their crop even if the output exceeds domestic demand.

Published in Dawn, Economic & Business, May 25th, 2015

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