Red Chilli Prices Remain Steady

The overall sentiment of Red Chilli across India was steady while there were changes in the spot market for the varieties. The steady nature of the market for the week was due to the moderate buying of the commodities. 

December 22 witnessed a price slump.

Market Sentiment 

• On Monday, it had been reported that there was good demand and buying of the varieties like Teja, No.5 and 334/S10.
• Prices for the varieties like DD and 441 dropped due to lower demand.
• The prices were quoted for Guntur’s Red Chilli benchmark spot market.
• The lack of buying was also due to the moisture content in the spice, about 50 percent.
• The Tamil Nadu buyers mainly bought the No.5 variety.
• There was limited availability of the S10 variety in the Guntur market.
• As per the market experts, traders and farmers were not interested in selling their S10 variety at the current price. They expect it to go higher before they liquidate the crops.
• The arrival of new chilli in Guntur has been delayed by 10 to 15 days due to the unseasonal rainfall. Earlier it was expected to arrive during the first week of January.
• In Warangal, the Teja variety price dropped, while 341 and Whot prices spiked up.
• The price of the spice in Byadgi was steady.
• The chilli standing crop has been reported to be recovering from the heavy rainfall it experienced earlier in Andhra Pradesh, Karnataka, and Telangana.
• The Union Agricultural Minister has reported that the demand for red chilli has increased. The reason is the recognition of the health benefits it offers.
• There is a good demand in the international market for export.

Arrivals 

• In Guntur, there was the arrival of 75000 bags.
• In Warrangal, 5000 bags arrived.
• In Byadgi, the arrival was reported at 96,000 bags.

Prediction

The earlier prediction that the heavy rainfall would impact the red chilli production for 2021-22 is needs reconsideration. The good recovery of the standing crops with favorable weather is likely to increase the production of the crop. As a result, it can eventually cap the prices of the red chilli in the coming days.

The expected red chilli production for 2021-22 is 1.466 million MT compared to last year’s 1.384 million MT.

There were also reports of pests infecting the crops in Andhra Pradesh and Telangana, which revised the earlier prediction of crop production from 1.593 million MT to the current number.

The continuously improving export demand will be fruitful for the Indian red chilli farmers and traders.

Prices 

In Guntur, the price for 334/S10, No.5, and Teja was higher by $0.07 per kg, $0.04 per kg, and $0.03 per kg, respectively.

Variety 441 and DD were lower by $0.04 per kg and $0.20 per kg, respectively.

In Warangal, the price of Teja decreased by $0.09 per kg, and for both 341 and Whot, it dropped by $0.20 per kg.

Chilli S4 Stemless

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