The Hindu Business Line : Chilli output seen lower on damage by rains

CHILLI production in the four major States - Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh - is estimated to be less by 30 to 50 per cent this year following the excess and protracted heavy rains in these States last year.

The crop in Karnataka this year is expected to be around 50 per cent of last year and a similar scenario is likely in Maharashtra and Madhya Pradesh, market observers told Business Line. Andhra Pradesh, which used to produce about 4.5 lakh tonnes (lt) is likely to produce around 3.5 lt this year, they said. Production in the three major centres in Andhra Pradesh — Guntur, Khammam and Warangal — might be around 2.85 lt as against the normal 3.75 lt last year, they said. The carry-forward stock would also be much less due to damages caused by the rains, they said.

Given this scenario, the total availability this year in the country might be somewhere between 6-7 lt as against last year's estimated production of around 10 lt, they said.

Besides the untimely rains in Karnataka had affected the colour of the chilli, which is specially grown for extraction of oleoresin, Mr C.V. Jacob, Managing Director, Synthite Industrial Chemicals, said.

Short supply consequent to fall in production would lead to an increase in price and "if our price becomes uncompetitive with that of other origins then that might also have a negative impact on our exports," he pointed out. Chilli oleoresin constitutes about 50 per cent of the total exports of oleoresins from the country.

The exportable surplus of other varieties of chillies is also expected to be less this year. Therefore, the stockists, grinders, exporters, oleoresin extractors are likely to enter the market early to cover their demand, they said. Short supply would tendto lead in price increase, they said.

India is the world's largest producer, consumer and exporter of chillies in the world besides having the largest area under the crop.

It is estimated that the country produced 10,60,345 tonnes of dry chilli from an area of 8,84,183 hectares in 2003-04.

Almost all the States in the country produce the crop.

However, the major growers are: Andhra Pradesh (46 per cent), Karnataka (15 per cent), Maharashtra, Madhya Pradesh, Orissa, West Bengal, Rajasthan and Tamil Nadu.

Though it can be grown throughout the year in one or the other part of the country, arrival extends from February to April. Planting starts from August and extends till October. Harvesting begins from December with five per cent of the arrivals usually reported in this month. The peak arrivals are reported in February to March.

It is estimated that around 25-30 per cent of the chilli crop is used for manufacturing powder, with the branded chilli powder manufacturers accounting for around five per cent of the total volume. Exports range between 70,000 tonnes and one lakh tonnes a year. Domestic market absorbs around 90 per cent of the total production.

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