Bigger crop, carry forward stocks to weigh on Byadagi chilli prices

A bigger crop and huge carry forward stocks will likely weigh on prices of Byadagi chillies this year as the new crop hit the markets of Karnataka. 

The market arrivals of Byadagi chillies have commenced in the key markets of Byadagi, Hubballi and Gadag among others in the key growing region of North Karnataka and the prices are showing a divergent trend for the varieties and hybrids. 

Known for its high colour content and low pungency, the Byadagi chilli finds favour for both culinary purpose and oleoresin extraction both in the domestic and overseas markets. 

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Arrivals down

“Total market arrivals of Byadagi, Hubballi and Gadag combined in the month of December stood at 3.5 lakh bags (of 30 kg each) compared with 4.27 lakh bags in the same period during 2022-23. Currently, prices of the original Byadagi variety are trading around ₹55,000 per quintal against ₹38,000 a year ago, whereas hybrids such as Syngenta 5531 are currently ruling around ₹16,000 compared with ₹23,000 levels a year ago,” said Basavaraj Hampali of Hampali Traders in Hubballi. 

The share of original Byadagi chilli varieties (Dabbi and Kaddi) in the current market arrivals is less compared to the hybrids and that’s probably the reason why prices are holding up and higher than last year, Hampali said. However, prices of Byadagi hybrids, which are largely used for making chilli powder by masala companies, are trending lower. 

Higher stocks

Tejraj Patil of RG Patil and Co, a large trader and exporter of Byadagi chillies, said the carry forward stocks in the cold storages in Karnataka were around 30 lakh bags. The estimated cold storage capacity for chillies is around 70 lakh bags. 

“The demand is muted. Currently, the market arrivals are mainly from the non-traditional growing regions of Karnataka. We expect the arrivals from the traditional growing belt to pick up in the coming weeks,” Patil said. Prices are likely to come under pressure going forward. 

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“The market arrivals are expected to pick up post Sankaranthi festival from mid-January, when we expect the demand to kick in,” Hampali said. 

This year, despite a drought in Karnataka, farmers have expanded the area under the chilli crop, which is up by around a third. Though the transplantation was delayed on account of delayed monsoon, the intermittent rains during the recent months have helped the crop, which is seen higher on account of better yields. “The crop looks good in the traditional Byadagi chilli growing areas of Kundgol and Annigeri this year, after a gap of almost 2-3 years,” Hampali said.  

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