Uncertainty Looming Around Byadagi Chilli
In Karnataka’s vibrant spice markets, change winds are swirling around the famed Byadagi chilli. There are price variations as the first signs of the new crop emerge in the markets of Byadgi, Hubli, and Gadag in North Karnataka. The unique hues and mild spiciness of Byadagi chillies usually command attention, but the dynamics seem poised for transformation this year.
The Arrival of Byadagi Chillies
The mandis (market) of Byadgi, Hubli, and Gadag are witnessing a colorful spectacle as various varieties of Byadagi chilies make their grand entrance. Renowned for their distinct color and moderate spiciness, these chillies are a staple in many spice aficionados’ kitchens. The ongoing season showcases a difference in rates among the different varieties, sparking discussions among market experts.
The current price:
- Byadagi variety stands at approximately $7,37 or €6,21 per kilogram, experiencing a significant surge from the $5,09 or €4,31 per kilogram observed a year ago.
- Hybrid variety, Syngenta 5531, is trading at around $2,08 or €1,75 per kilogram compared to $2,96 or €2,48 per kilogram in the previous year.
Traders attribute this price differential to the dominance of hybrid varieties like Dabbi and Kaddi in the current market arrivals, leading to a price shift.
A Peek into Supply and Demand
Major traders and exporters shed light on the chilli, revealing that the carry-forward stock in cold storage stands at approximately 3.0 million bags, occupying nearly half of the estimated capacity. While demand remains calm for now, the spotlight is on the non-traditional producing areas of Karnataka, contributing to the current market arrivals. Anticipation mounts as traditional chilli-producing belts gear up for increased contributions in the coming weeks, promising both challenges and opportunities for traders.
Drought, Expansion, and Crop Optimism
Despite facing the challenges of drought in Karnataka, farmers have boldly expanded the chilli crop area by almost a third. Delayed monsoons posed initial hurdles, but intermittent rains in recent months have nurtured the crop, leading to expectations of robust yields. After a hiatus of 2-3 years, the traditional Byadagi chili growing areas of Kundgol and Annigeri are witnessing a promising outlook for the crop.
As the spice world braces for a shift in Byadagi chili prices, traders find themselves at the helm of uncertainty. The upcoming Sankranti festival in mid-January marks a potential turning point, with increased arrivals and heightened demand on the horizon.