Chilli, palm oil fetch record prices this season, says Agriculture Minister Atchannaidu
22/01/2026 (The Hindu) - Agriculture Minister K. Atchannaidu has said farmers are benefiting from record prices for chilli and palm oil crops this season, crediting timely policy decisions taken by the coalition government.
Addressing the media on Thursday, he recalled that chilli farmers faced severe price crash last year, prompting the government to intervene through consultations with the Centre and announce a Market Intervention Price to stabilise rates.
He said the situation significantly improved this year due to crop diversification by farmers and proactive government measures, resulting in steady and remunerative prices.
Chilli cultivation is spread across Palnadu, Kurnool, Prakasam, Anantapur, NTR, Nandyal, Guntur and Bapatla districts. During the current season, prices have risen to ₹15,000–₹19,500 per quintal, compared to ₹12,500- ₹13,500 last year.
The Minister said quality improvement through Integrated Pest and Nutrient Management, farmer training and collaborations with Digital Green and ITC helped boost market value.
Mr. Atchannaidu also highlighted Andhra Pradesh’s leadership in oil palm cultivation, with nearly 1.97 lakh farmers cultivating the crop in over 2.49 lakh hectares. The average price of fresh fruit bunches reached ₹19,579 per MT, the highest in a decade, following enforcement of Oil Extraction Ratio norms. Over ₹13,425 crore had been directly released to farmers so far, he said.
Criticising former Chief Minister Y.S. Jagan Mohan Reddy, he alleged that negative statements during price downturns had further unsettled markets. He asserted that the coalition government restored farmers’ confidence through assured pricing, drip irrigation support and long-term crop planning under the Purvodaya initiative