Chandigarh, June 8,
Punjab Agriculture and Food Processing Minister S. Gurmeet Singh Khudian announced that the state government will establish a ₹9.50 crore chilli processing plant in Abohar by September 2025 to promote crop diversification and enhance farmers’ income.
He revealed that the Punjab Agri Export Corporation Limited (PAGREXCO) is setting up this plant, with a capacity to process five tons per hour, on one acre of land. This initiative is expected to provide a significant boost to the state’s agricultural sector.
Khudian highlighted that encouraging farmers to grow high-yield chilli varieties for processing has led to an annual increase in the area under chilli cultivation. By 2024, the cultivated area reached 10,614 hectares—the highest recorded in recent years—yielding 21,416 metric tons. Firozpur district led in production, followed by Patiala, Malerkotla, Sangrur, Jalandhar, Tarn Taran, Amritsar, SBS Nagar, and Hoshiarpur. Firozpur’s average yield of 19 metric tons per hectare reflects the adoption of skilled farming practices and farmers’ ingenuity.
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The Food Processing Minister noted that PAGREXCO’s marketing network facilitates direct procurement of chillies from farmers and aggregators. The corporation exports Punjab’s red chilli paste on a large scale, with growing global demand driven by the chillies’ high quality and sharp flavor, further motivating farmers to cultivate red chillies for processing.
Chilli cultivation has emerged as a vital part of Punjab’s agricultural diversification, offering farmers a profitable alternative to traditional crops like wheat and rice. Khudian emphasized that the state’s favorable agro-climatic conditions have strategically positioned Punjab as a leading player in chilli production and processing.
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He added that Punjab is now exporting red chilli paste to international markets, including Middle Eastern and African Caribbean countries. PAGREXCO aims to take Punjab’s chilli paste to the global stage, with its marketing team actively showcasing the state’s flavorful chillies at exhibitions and fairs to meet rising demand and promote the product worldwide.
