Pepper production in the region has decreased because of a heat wave that caused a drought and brought pests and diseases to the pepper crops. As a result of the low production, prices are expected to increase in the coming days.
Even though the price of all varieties of dried peppers remain stable, producers aren't making enough profit. According to them, they have bigger losses due to the low production than what they achieve with the increase in prices.
However, producers stated their biggest fear was the constant increase in agricultural input prices. Currently, improved seeds and agrochemicals have high prices due to the rise of the dollar, because many of the inputs are quoted in that currency. Hence, the price increase expected for peppers would only be a palliative in face of all the economic problems that the agricultural producers have.
Either way, some of them said, producers are happy because at least with the prices expected for peppers, it is possible to see the future optimistically, and they will be able to recover from some of the losses incurred in previous years. It is possible that price of this product may increase a little more in the short term.
Source - http://www.freshplaza.com/
