The Hindu Business Line : Chilli turns hot on fears of lower crop

CHILLI prices have increased sharply by over Rs 1,000 a quintal in last one month on projections of a lower crop in Andhra Pradesh and Karnataka amid steady domestic demand.

At Guntur, spot prices of the Guntur-334 variety were up at Rs 2,800-2,950 a quintal from Rs 1,700-1,800 a month ago. At Navi Mumbai, prices were up by Rs 600-700 to Rs 3,100-3,300 a quintal on reports of crop damage in Andhra Pradesh and Karnataka due to continuous rain in the last few days.

Daily arrivals at the major centres in Andhra Pradesh have declined sharply to 15,000 bags on Thursday from 50,000 bags a week ago.

"Prices have moved up significantly in the past few days, despite the fact that carry-over stocks in Andhra Pradesh is good. Major buyers are oleoresin manufacturers," Mr Ashok Datani, a chilli trader, told Business Line.

Carryover stocks in Andhra Pradesh are expected to be around 40 lakh bags (each of 40 kg) on account of the bumper crop last season. The new crop in Andhra and Karnataka is expected to be lower by 50 per cent over the previous season, according to trade estimates.

The chilli crop in Andhra Pradesh was estimated higher at 1.25 crore bags last season while the Karnataka crop was expected around 40-45 lakh bags, sources said.

"Overall the supply is good, but stockists and farmers at the Guntur market are reserved in their selling on expectation of higher prices. Prices may continue to rule higher on worry of lower crop this season," another trader said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Record deliveries of Oct contracts in 10 commodities on NCDEX

Net loss

Coonoor tea prices up on low volumes

Cotton futures may consolidate

Chilli turns hot on fears of lower crop

Heavy arrivals drive down cardamom prices

NRI group sets up pilot plant to process vanilla