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G.K. Nair

Kochi , Dec. 6

CHILLI production in the country is likely to decline by around 30 per cent due to unusual and prolonged rains this year. This might reduce the availability of high quality chilli for the oleoresin industry.

The untimely rains, mainly in Karnataka, have affected the colour of the chilli, which is specially grown for extraction of oleoresin. "As a result, its production is estimated to be less by 30 per cent," Mr C.V. Jacob, Managing Director, Synthite Industrial Chemicals, an exporter of oleoresins from the country, told Business Line. Exports of paprika oleoresin, which touched 2,000 tonnes, valued at Rs 175 crore last year, might decline this fiscal, he said.

The short supply would lead to an increase in price and "if our price becomes un-competitive compared with other origins it might have a negative impact on our exports," he said.

Chilli oleoresin constitutes about 50 per cent of the total exports of oleoresins from the country. The April-September export figures for the current fiscal show that the shipments of spice oils and oleoresins increased to 3,025 tonnes valued at Rs 246.08 crore from 2,884 tonnes worth Rs 237.87 crore in the corresponding period last fiscal. Spices oils and oleoresins are exported to the US, EU, Australia and Japan , while the exports of chilli is mainly to the US, Sri Lanka, Bangladesh, West Asia and the Far-East.

The exportable surplus of other varieties of chillies is also expected to be less this year because of the fall in production. India is probably the world's largest consumer of chilli and hence the domestic market absorbs almost 90 per cent of the production, he said.

Shrinkage in availability for exports coupled with increased availability from other origins has already pushed down the country's export of chilli to 59,500 tonnes valued at Rs 201.01 crore in April-September of the current fiscal from 75,997 tonnes valued at Rs 277.78 crore in the corresponding period last fiscal. The unit value during April-September 2005 was Rs 33.78 a kg as against Rs 36.55 a kg in the same period last year. An increase in chilli price would depend on the availability from other major producing countries such as Mexico and South Africa, he said.

Chilli had two important commercial qualities, he said. If some varieties were famous for red colour because of the pigment casanthin, others were known for biting pungency attributed by capsaicin. India is the only country rich in many varieties with different quality factors.

The total production in the country last fiscal is estimated at around 11 lakh tonnes with an average productivity of about 1,200 kg a hectare from a total area of about 8.82 lakh hectare.

The major producers of chilli in the country are Andhra Pradesh (49 per cent), Karnataka (15 per cent) Orissa (8 per cent), Maharashtra (6 per cent), West Bengal (5 per cent), Rajasthan (4 per cent) and Tamil Nadu (3 per cent).

The global demand this year is estimated at 1,13,000 tonnes. Demand is growing for value-added products such as chilli paste, curry powders and other sauces for the convenience food industry. In the extraction industry, there is always demand for high capsaicin content (over 1 per cent) chillies, as this offers extractors a direct saving on unit costs of extraction.

India had immense potential to grow and export different types of chillies required by various markets, he added.

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