Current Scenario
The primary Red Chilli spot markets were steady. In the Byadgi spot market, the total supply was 2,30,000 bags, from which 70% was of lower quality, 20% average quality, and 10% was good quality, as per the reports.
Due to heavy rainfall in Karnataka, the chili crop got damaged by 8 to 10% as per the current assessment. Farmers are also fearful regarding chili quality.
Factors Affecting the Market
The heavy rainfall in Warangal Chilli growing regions impacted standing chili crops. As per trade sources, the quality was reported poor. Buyers were active for cold storage stocks, and exporters’ demand was also reported well, as the concern for new chili quality was observed.
Arrivals
The arrival of old crops was significantly less in quantity. Nevertheless, about 80-85 thousand sacks of red chilies were reported in Gundarmandi, and there was an increase in selected varieties.
In central Chilli-producing states like Andhra Pradesh and Telangana, the pressure of arrivals of the new crop has started building up substantially.
New crop arrivals at the Guntur spot market continued to be high, with moisture content around 10% to 12%. However, the rate was reported weak due to unseasonal rainfall.
Prediction
Currently, chili buyers are waiting for a good quality supply. Experts expect quality arrivals in the coming days and foresee increased demand. Due to adverse Weather, the new crop of red chilies may lose about 10-15 percent.
Bottomline
According to the available data of the Spices Board, in the first half of the financial year 2021-22, red chilies worth 2027,75 million dollars are already exported from the country.
Earlier, during the reporting period of the financial year, it had exported 3,17,626 ton quantities.
The following week proves to be vital from the point of view of determining the bullishness or bearishness.
Prices
- Chilli S4 stemless stands at $2,02 per KG
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