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The pepper weevil is a small insect (about ?" long) but is a worldwide problem for pepper growers. It has been an increasing problem in Santa Clara County. Female weevils chew holes on buds or at the base of young fruit and then lay their eggs inside. The larvae develop inside the fruit causing damage and leaving excrement.Then they chew their way out making the exit holes seen in the photo. Pepper weevils sometimes also cause premature fruit drop. They affect all kinds of peppers and chiles, but a recent local study showed the most problems with bell peppers. To reduce the population, clean up and discard any dropped fruit and peppers with holes near the stem.

More information: Pepper Weevil