The Hindu Business Line : Chilli may be range-bound in short to medium term

“High spot prices in first quarter of 2007 prompted many farmers to take up chilli cultivation in large scale,” said Mr Harish Galipalli, Head of research, Karvy Commodities.

Andhra Pradesh output

Andhra Pradesh contributes 53 per cent of the total chilli output followed by Karnataka – 9 per cent, Orissa and West Bengal – 6 per cent, Maharashtra – 5 per cent and Madhya Pradesh – 4 per cent. Other States total the balance.

In Andhra Pradesh, Guntur alone contributes 30 per cent of the State’s output, followed by Warangal, Khammam, Krishna and Prakasam.

According to trade estimates, production in 2008 is expected to be higher by 10-15 per cent in Andhra Pradesh and 50 per cent more in Madhya Pradesh. Favourable weather and higher yields are said to be the major reasons for a bumper crop this year.

Global output

Global chilli output is about 40 lakh tonnes a year. With India expected to reap a bumper crop this year, exports are anticipated to touch a new high.

Spice Board of India estimates say export may touch an all time high of 1.9 lt in 2007-08, up by 28.3 per cent against 1.48 lt (Rs 807 crore) shipped last year.

Chilli exports account for 48 per cent in terms of quantity and 28 per cent of the total export of spices from India.

India share

Last year, India accounted for 26 per cent of the global production, followed by China, Pakistan, Morocco, Mexico and Turkey.

Malaysia is the largest buyer of Indian chilli. About 29 per cent of the total export is to Malaysia, followed by Bangladesh 19 per cent, Sri Lanka 15 per cent and US 9 per cent, UAE 8 per cent and others 19 per cent.

China, also a major producer, imported over 900 tonnes from India in 2006-07 due to crop damage.