Rural Telangana’s Industrialization Success Story: Chilli Processing Plants Revolutionize Agricultural Economy
Mahabubabad, July 2, 2023
In a remarkable example of industrialization, Mahbubabad district in rural Telangana has witnessed a flourishing transformation in its agricultural sector. With an annual production of approximately 1.5 lakh metric tons of chillies, accounting for around 25% of the total chilli production in Telangana, Mahbubabad has become one of the highest chilli-producing districts in the region. Moreover, the chillies grown here are internationally recognized for their exceptional quality.
Recognizing the potential of this abundant agricultural resource, two large-scale chilli processing plants have been established in Mahbubabad district. Through swift land allotment and incentivization, these processing plants now possess a collective capacity to process 1 lakh metric tons of chillies annually. Their significant contribution to the global market is reflected in the fact that their oleoresin exports are shipped to over 85 countries, commanding more than 50% of the global market share for plant-based oleoresins.
One of the prominent companies involved in this industrialization drive is ‘Plant Lipids.’ Their state-of-the-art processing unit, located in Kuravi mandal, boasts a capacity of 150 metric tons per day. With an investment of ₹70 Crores, this facility has become a key player in the region. Equally impressive is the contribution of Vidya Herbs, which has established a processing unit with the same daily capacity in Maripeda mandal. This unit required an investment of ₹50 Crores, and Vidya Herbs has already committed to further expansion with an additional investment of over ₹150 Crores.
The presence of these large processing facilities has had a profound impact on the local economy. Notably, it has helped stabilize chilli prices, offering better opportunities for farmers in the region. To facilitate this, a direct-from-farm procurement system has been initiated, facilitated by women self-help groups (SHGs). Through this system, farmers can sell their produce at their farm gates, eliminating transportation costs, commissions, and other overhead expenses. The payments are made on the same day, enabling farmers to earn an additional 10-20% income. Plant Lipids alone has procured approximately 5,000 metric tons worth ₹100 Crores through this model.
Looking ahead, both Plant Lipids and Vidya Herbs have pledged to procure over 20,000 metric tons of chillies, amounting to ₹400 Crores, in the upcoming season. This commitment is expected to further boost the income of local farmers and solidify Mahbubabad’s position as a significant player in the global chilli market.
The success story of industrialization in rural Telangana, particularly in Mahbubabad district, stands as a testament to the transformative power of targeted investments and strategic initiatives. By leveraging the district’s prowess in chilli production, these processing plants have not only revitalized the agricultural economy but also empowered local farmers, leading to a brighter future for the region as a whole.
