The red hot chilli peppers are flooding into Guntur, with a record-breaking arrival of 0.15 million bags. The farmers are reaping the benefits of favourable crop prices, selling in bulk quantities.
Less demand
However, the market is relatively tepid, with an unsure prospect of gradual growth or decline. Resting at $3,16/$3,22 per kg, number 334 red chilli prices remain stagnant in the local wholesale market due to low sales. Reports indicate that there has been a surge in prices. The temperature is rising with the arrival of summer, but demand is slow, a growing concern for traders. This lessened demand is causing the market sentiment to be injured by unnaturally high prices.
Guntur is a hub for these spicy pods, holding the largest red pepper market in the country. The elevated pricing is the reason for the record influx of red pepper. Despite the historic arrivals, buying support remains strong, with the price remaining high. Unfortunately, due to these shaky business transactions, number 334 red chilli experienced a loss as it fell to $2,43 per kg.
Future Scenario
Contrary to what one might expect, high production of red chilli during the current season did not lower prices. Both domestic and international consumption increased, driving up prices. However, the import countries, particularly China, are relatively weaker buyers due to the higher prices seen in the domestic markets. Exports are also being moderately affected, seeing a decrease in exports of 24% and a meagre 2% improvement in income.
Sales are expected to suffer as the summer season progresses, particularly with high price points. With fewer chances of growth, traders anticipate limited changes in the market sentiment but surmised that the increase in exports could lead to more optimistic attitudes.
The Chilli dried long red stemless prices were recorded at $3,23 per kg FOB.