Chilli sizzles on fears over poor crop

Our Bureau Chennai | Updated on March 12, 2018

Reports of Chinese interest in the Indian spice is also pushing up prices.

Chilli futures continue to rule hot on NCDEX with September contracts rising over 3 per cent in early morning trade.

Chilli and turmeric have been the top gainers in the spice complex in the last fortnight gaining on fears over crop prospects due to scanty rain.

In addition, chilli has been gaining on reports of Chinese interest in the Indian spice. About 50,000 tonnes have been reportedly bought by China in the last couple of months.

Export data for April released earlier this week have also lent support to chilli with monsoon being 22 per cent deficient. Areas where spices are grown could come under stress thus affecting production. Also expectations that farmers could switch back to paddy after growing chilli last year is influencing the market.

On Wednesday, chilli for delivery in September was quoted 3.36 per cent higher at Rs 6,090 a quintal against Rs 5,892 at close on Tuesday. August contracts were up Rs 166 at Rs 5,880 and October contracts increased by 2.95 per cent to Rs 6,350. In the Guntur spot market, chilli was quoted at Rs 5,927.10 a quintal.

Published on July 25, 2012

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