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Punjab

Punjab : 9.50CR chilli processing plant to boost crop diversification

June 08, 2025 09:14 PM
Punjab : 9.50CR chilli processing plant to boost crop diversification

5 tons/hour capacity plant to start operation in Abohar by September 2025: Khudian

Punjab Newsline, Chandigarh-

In a bid to promote crop diversification and boost farmers' income, Punjab Govt is set to commission a Rs. 9.50 crore chilli processing plant in Abohar by September 2025, announced Gurmeet Singh Khudian, Minister of Agriculture and Food Processing, Punjab.

He said that the chilli processing plant, being established by Punjab Agri Export Corporation Ltd. (PAGREXCO) at one acre of land, will have an installed capacity of five tons per hour, besides provide a significant boost to the state's agricultural sector.

Khudian highlighted that the area under chilli cultivation has been increasing annually, with farmers being encouraged to grow high-yielding varieties suitable for processing. As of 2024, Punjab's chilli cultivation spanned 10,614 hectares, the highest recorded area in recent years, yielding 21,416 metric tons. Ferozepur district leads in chilli production, followed by Patiala, Malerkotla, Sangrur, Jalandhar, Tarn Taran, Amritsar, SBS Nagar, and Hoshiarpur. Ferozepur's average yield of approximately 19 metric tons (MT) per hectare showcases the region's efficient farming practices.

 The Food Processing Minister stated that PAGREXCO directly procures chillies from farmers and aggregators, leveraging a well-established marketing network. The corporation is a major exporter of concentrate pepper mash cayenne (red chilli paste) from Punjab. The high quality and pungency of Punjab's chillies have led to increasing demand year after year, encouraging farmers to produce red chillies for processing.

 Chilli cultivation has emerged as a vital component of Punjab's agricultural diversification, providing farmers with a lucrative alternative to traditional crops like wheat and paddy. The state's favorable agro-climatic conditions have strategically positioned Punjab as a key player in chilli production and processing, capitalizing on new opportunities in the agricultural sector, he added.

 

 

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