Chilli prices have gained over 10 per cent in the last fortnight on worries over availability of water in growing areas.
“We have received good rain now that is taking care of soil moisture. But the storgage level in reservoirs is low. If the level does not improve, chilli prices could rise further,” said Mr Alapati Srinivasa Rao, a trader, from Guntur. Besides, export demand is keeping prices at higher levels. “Exports is as usual higher during this period of the year. We are getting orders from all-around,” Mr Rao said. Pakistan, Malaysia, Nepal, Sri Lanka, Singapore and Bangladesh are looking for Indian chilli. Besides, China has begun to buy Teja chilli, which has high pungency.
“Prices, on the other hand, could cool if the catchment areas get good showers,” Mr Rao said.
In Guntur spot market, chilli prices are ruling between Rs 3,900 to Rs 4,200 a quintal for the red varieties. The thin variety is being quoted at Rs 5,200. NCDEX August chilli was at Rs 5,914/quintal , up Rs 228 while September October series were at Rs 6,128 and Rs 6,416 gaining Rs 236 and Rs 248 respectively.