There is significantly low production of red chilli among the southern states. As a result, the traders are concerned about the red chilli market.
Current Scenario
- As per the Guntur spot market traders, they face difficulty due to the low supply of red chilli. As a result, the market for red chilli is likely to go on a bullish mode.
- Traders have stated that the current season’s crop production impact will appreciate the market.
- With the last year’s low production, there is less carry-over stock. As a result, even the stockists are releasing them in limited supply. The recent arrival of red chilli in the spot market of Guntur is now at 50 thousand bags only.
- Reports show that Andhra Pradesh, Telangana, and Karnataka will also produce red chilli in lesser quantities. Predicting the low output and, eventually, an insufficient supply of Red Chilli in the market has already started taking effect with the price hike.
Prediction
If the farmers don’t start selling their new crops soon, the arrivals in the market will go down further.
The anticipation of receiving a higher price due to the low production has resulted in farmers not selling their new stocks now. It has resulted in traders, stockists, and suppliers feeling nervous that the limited supply will skyrocket the commodity’s price and the market’s activity might lessen.
Price Trend
Dry Chilli S4 Stemless
| Date | Price |
| February 9 | $2,055 per kg FOB |
| February 3 | $2,050 per kg FOB |
| February 1 | $2,035 per kg FOB |
The following reports may be of interest to you:
Related posts:
Indian Chilli Might Become The Bumper Crop With Increased Acreage 
Indian Commodities that Experienced a Rise in their prices this month 
India: Chilli production to touch a new level Chilli production in India to touch 2 million tonnes in fiscal year 2021 
The stable Indian commodities of the week An outlook on the stable commodities turmeric, red chilli, black pepper, and chickpeas. This report will show what are the factors due to which these commodities still have stable prices. 
Indian chillies: Good demand is increasing 
Mixed but Steady Trend in Indian Spices Indian farmers switch to chilli 
Mix trend in chilli market