GEORGE TOWN: Certain crops have been growing well in the dry, hot spell up north, from durians to harumanis mangoes and now, chilli.
For consumers, that might mean cheaper sambal. For smallholders, chilli harvests have been so abundant that ex-farm prices have dropped sharply, pushing the Federal Agricultural Marketing Authority (Fama) to step in to steady the market and protect growers’ income.
The agency did not reveal prices in a statement on Friday (May 1), but said the price crash was driven by a surge in supply, as dry weather created ideal conditions for chilli production across mainland Penang.
Too much rain brings disease, rot and uneven yields. Hot and dry days, on the other hand, let chilli plants grow fast and fruit heavily.
But the success has led to oversupply.
Fama said it had increased direct purchases of red chillies from farms from one tonne to two tonnes a day, while expanding its marketing network to absorb the excess.
The intervention includes programmes involving farmers in key growing areas such as Ara Kuda, Perda Veggie Park and Kepala Batas, aimed at coordinating supply and reducing reliance on middlemen.
To widen sales channels, Fama said chillies would be pushed through Pasar Tani, Agro Madani sales and Agrobazaar Kedai Rakyat outlets, with weekly sales at Komtar set to begin on May 8.
As of Tuesday (April 28), nearly 100 metric tonnes of produce, including chillies, had been purchased under the intervention effort to balance supply and demand.
Fama director-general Abdul Rashid Bahri said the move followed instructions from the Agriculture and Food Security Ministry to cushion farmers from falling prices while keeping supplies stable.
