Recently, there has been a slowdown in red chilies in major producing states due to the upcoming harvest of Madhya Pradesh and weak buying by exporters.
A new crop of red chilies is about to arrive in Madhya Pradesh in the month of September. Though the status of the upcoming crop of Madhya Pradesh is not clear yet, it is believed that the crop may be damaged due to recent rains and floods. The country’s leading red chili-producing states like Andhra Pradesh and Telangana have been witnessing intermittent rain for the past few days. There is no fear of any significant damage to the crop due to occasional rain and sometimes sunshine. However, before this, both these states received good rainfall.
After the recent continuous upsurge, the sale of red chilies to the farmers has come down relatively. As per the latest information provided by traders, the arrival of red chilies in Guntur was reported to have reduced to about 40-45 thousand sacks. There has been a slight slowdown in red chilies due to comparatively low arrivals and relatively sluggish offtake. Earlier, farmers in Andhra Pradesh and Telangana had limited the sale of their red chili crop for some time in the hope of getting higher prices in the future. This was the reason that this time the price of this major grocery commodity remained high in the spot even after the start of the new crop.
Surprisingly, from the beginning of the season till recently, there were reports that red chili prices remained firm in other big mandis including Guntur, even after heavy selling by the farmers.
With the recent rains and floods, there is a possibility of red chilies might arise further after a brief pause. Chilli’s demand by exporters for the International market has been down as chilies had reached to very high levels, and clients preferred to wait and expected the market to be down. Though the market may be at pause and a little down, overall fundamentals are very strong about the chilli market, and experts state it is not expected to go so much down this season.
The chilli dried long red stemless prices were recorded at $2,68 per kg FOB.
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