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Punjab: Ferozepur farmers bet big on chillies to spice up profits
In the first phase, a farmer-producer company has collaborated with an agent to sell the produce for ₹28 per kg
A group of 20 enterprising farmers from Ferozepur district has formed a first-of-its-kind farmer-producer company (FPC) in the state to boost cultivation of chilli and enhance agricultural profitability.
A seasoned chilli grower and director of the Saragarhi FPC, Balwinder Singh from Mahalam village, said that initially 10 horticulturists joined hands last month, and an equal number of farmers volunteered to be part of the initiative.
In the first phase, FPC has collaborated with an agent to sell the produce for ₹28 per kg.
“All 20 members of the FPC are cultivating the crop on 20 acres in the ongoing chilli season. Our team is excited for the success of the maiden commercial joint initiative for the crop sown in October,” he added. Experts said that an acre produces around 250 quintals of green chillies, while red chilli yields 80 to 120 quintals per acre.
Balwinder added that FPC has planned to venture into a cold store and a unit to process chilli powder. “The project is likely to cost about ₹2 crore. The farmers will contribute money from their pockets and also avail government’s subsidy. We are looking for suitable land for the project in Ferozepur,” said Singh.
According to provisional estimates from the state horticulture officials, nearly 8,000 acres are dedicated to chilli cultivation in the 2025-26 rabi season.
Officials said that Ferozepur district is emerging as a major hub for chilli production, with farmers collectively producing over 20,000 tonnes of green and red chillies. In 2017, only 2,000 acres were under chilli cultivation, but this figure has rapidly increased in the past eight years.
Another veteran chilli grower and a shareholder in the FPC, Harjit Singh from Atari, said that farmers felt cheated as their produce fetched less in the market. “It costs around ₹50,000 per acre to cultivate chilli, but the earnings can exceed ₹1 lakh. In favourable market conditions, profits can be significantly higher. But in the absence of any warehousing, we were forced to sell the produce at throwaway rates to the agents. But the cold storage will help us in enhancing the shelf life, and we could sell it in the market when the rates are better,” he added.
Another participant in the FPC venture, Jagmeet Bhullar, said that they have decided to sell the chilli powder under their brand name to improve profitability.
“We have decided not to process chilli as paste as it would again keep at the mercy of the limited buyers. Chilli powder has a universal demand, and the upcoming facility would focus on it,” said the progressive farmer.
According to Ferozepur district horticulture officer Simran Singh, farmers were interested in the rabi crop diversification, but the volatile market was posing a financial challenge to them.
“It is for the first time that FPC has been registered in the state, and our team of experts are providing them all support in the venture. A group of progressive farmers have initiated a step to market the produce, and the project would help others to chip in with them,” he said.
