After the prices held steady for January, Red Chilli prices are on an upward trend from the beginning of February.
Current Scenario
Since January, there has been a rise in the demand for the new crop. As the market has started getting the new crop, the activity in the spot markets has increased. This has resulted in a steady rise in the price of red chili.
The new crop arriving in the market are of good quality. As a result, the demand for stocks from cold storage has been down.
In January, the demand for No.5 and 334 varieties was reported to be good.
There is news of crop damage due to unseasonal rain and insects. The crop damage by insects in Telangana is estimated to be about 0,4 million acres. As a result, the production of red chili is down by 40 to 50 percent.
Indian Spice Board is working to resolve the use, and farmers seek support.
Towards January end, there was a rise in the export demand for the crop and among the domestic stockists because of the reported crop damage.
Prediction
Experts expect quality arrivals in the coming days and foresee increased demand.
Low supply has kept the market strong and positive. According to chili traders, if the market does not get further lockdown restrictions in domestic and international countries, the chili market might remain firm.
Price Trend
| Date | Price |
| February 3 | $2,05 per kg FOB |
| February 1 | $2,03 per kg FOB |
| January 11 | $2,02 per kg FOB |
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