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Good rains, higher acreage may stabilise chilli prices

The first chilli crop of the new season is due next month from Madhya Pradesh.

, ET Bureau|
Sep 19, 2019, 02.58 PM IST
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Agencies
Bug market
The Bug Market in Nagaland sells different types of insects, hot chilli called Bhut jolokia, vegetables and much more. Plan a trip to the market.
Increase in sowing area and a good monsoon may help stabilise red chilli prices, which have fallen after escalating to a new high of Rs 165 per kg last week.

Supply crunch and a steady domestic demand drove Teja , the premium variety of the largest exported spice from India, up nearly 15 per cent in a month to a record level. But with chilli acreage for the new season going up in the main producing regions of Andhra Pradesh, Telangana and Karnataka, Teja prices have dipped to Rs 160 per kg.

“Prices may come down again slightly in anticipation of a good crop as the acreage has increased 15 per cent. As a result of good rains, Godavari and Krishna rivers are running full which may help reap a good harvest next year,’’ said Ravipati Peraiah, managing director, Vijayakrishna Spice Farms.

Chilli prices are hovering in the range of Rs 120 per kg for the lowest quality to Rs 160 per kg for the premium varieties, 40-50 per cent higher than that last year.

High prices have slowed down exports. “China is not buying much, as chilli has become dearer. Besides, their chilli crop will be harvested next month which may impact Indian chilli prices. But there is robust domestic demand for the Sannam variety, the arrivals of which are also good,’’ said Laxmikant G, product head-chilli at Agrocrops India Ltd.

Industry executives said that chilli prices may stabilise in the range of Rs 140-145 per kg in the coming weeks in expectation of a good crop and sluggish demand from China when its new crop arrives. “A price of Rs 140 or below could spur export demand. At present it is brokers who are raising prices. Farmers have already sold their entire stock,’’ said L Selvadurai, proprietor of Southern Agro.


The first chilli crop of the new season is due next month from Madhya Pradesh. “Though the sowing was higher, heavy rains could have caused some damage in the state ,’’ said AP Murugan, director of Paprika Oleos, an exporter.

Madhya Pradesh produces about 300,000 tonnes of chilli, out of a total production of around 2.3 million tonnes in the country. But in the past couple of years, the output was below normal because of a virus attack in the farms. Andhra Pradesh and Telangana together account for more than 60 per cent of India’s total output of chilli.

Also Read

Local demand lifts red chilli prices 40%

Red chilli price surges on fear of shortfall

Red chilli prices rule at Rs 170/kg on thinning stocks, domestic demand

Chilli prices may fall 10% by December-January

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