On Tuesday, December 21, the overall sentiment for the red chilli market was mixed. However, the improved activity in the market came as a relief for the farmers and traders of the spice. So far, the month has been stable for the commodity, with slight price hikes in the last twenty days.
Market Sentiment
Due to the stable pricing and not much of a hike in the last few days, the buyers have started stocking up the cold storage.
Previously the stockists were holding on to the cold storage stocks due to the lower pricing of the spice.
There was good demand for red chilli in the Bedia spot market of Madhya Pradesh. The market was reported to have a supply of good quality spice. There was also the report that farmers were waiting for the crops to have a higher price in the market before they released them.
Currently, the standing crops in Telangana, Andhra Pradesh, and Karnataka are recovering from the excess rainfall they faced last month. Earlier, the new crops will arrive in the Guntur market during the first week of January. But the earlier rain will delay the arrival of the new crop by 10 to 15 days from what was scheduled.
The market is expected to stay stable in the coming days despite not much demand from the local consumers.
As per reports, there was a bit of sluggish buying of the Red Chilli number 334 and remained frozen at the pre-branded level of $172.19 per 0.1 Tonne, which is down by $6.62
Arrival
At Byadgi spot market, new chilli arrived, and it was reported to be standing at 65,000 bags.
Prices
Dry Chilli S4 Stemless
| Date | Price |
| December 21 | $2,05 per kg FOB |
| December 9 | $2,04 per kg FOB |
Prediction
The overall production of red chilli for 2022 is estimated to be up by 15.10 percent this year compared to last year. For the market year 2021, the production was 1.384 million MT, whereas the prediction for 2022 red chilli production by market experts is believed to be about 1.593 million MT.
The acreage for Andhra Pradesh alone was reported to have increased from 139,000 hectares last year to 183,550 hectares this year. On average, the sowing area for red chilli in the state is estimated to be about 137,946 hectares.
However, the pest attack and the cloudy weather in Andhra Pradesh, Telangana, and Karnataka have made the farmers weary of the situation and the condition of the crop.
The increase in production was expected to cap the price for red chilli in the coming days. However, the scenario might change due to the news that heavy rains in Karnataka have impacted standing crops, and it is expected the damage will be by 8 to 10 percent. Farmers of Karnataka, as a result, are fearful of the impact, and according to analysts, the next 10 to 15 days will be crucial in determining the condition of the crop.
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