Mr Kumar's report states that while chillies were sold at Rs 12,500 a quintal in the month of March, prices dropped due to increase in supply - so much so that roads leading to the market yard were blocked with sacks of chillies.
On 28th of March, commission agents of big companies allegedly spread rumours that chilli would not be purchased after May 1 and thus, stocks should be brought and sold at the market yard immediately.
As prices offered for chilli fell as low as Rs 2,500 to Rs 4,500 a quintal, farmers decided to go on protest. Their anger was directed at officials and the government, which failed to respond to their distress call over the crash in chilli prices.
"We invested upto a lakh rupee per acre. Now, I won't even recover Rs 30,000," rued a farmer.
Huge police deployment at the market yard ensured that things came under control.
Telangana Chief Minister K Chandrasekhar Rao had said that his government was taking the issue up with the Centre.