Red Chilli Prices Remained Stable In February

February witnessed a sentiment for red chili between being firm and steady. In the early weeks of the month, there were significant price increases for the spice, and it was predicted to stay that way.

Monthly Overview

The prediction was correct, but in the coming days, with the increase in the arrival of the new crop, the market is expected to enter a bearish mode.

However, as per market experts, that will be a temporary phase, and in the long run, red chili prices in India will stay firm.

There have been several factors that led to the red chili prices staying bullish in February. One of the primary factors has been news of crop damage due to unseasonal rain and insects. Due to the latter, the crop damage in Telangana has been estimated to be about four million acres. As a result, the production of red chili is down by 40 to 50 percent. Amidst this, there was a rise in the export demand for the crop. In addition, it increased buying activity among the domestic stockists for the old crop because the new crop arrived at low quality.

Since the new crop’s buying activity was low, the leading red chili market suppliers lowered their supply to the spot markets. All these factors supported the price in the market.

With the production being down and the standing crops infested with pests, farmers have been demanding support from the government. Hence the Indian Spice Board is working to resolve the use, and farmers seek help.

Towards the end of the month, Andhra Pradesh has increased its supply and sale of red chili. In Guntur, the arrival has risen to 100,000 bags. This can put pressure on the price in the upcoming days.

Prediction

The production of red chili is already down in Andhra Pradesh, Telangana, and Karnataka, which has moved the market up. But with, with the low overall output of the crop, the market is expected to move up eventually. After that, however, there is likely to be e a bit of a temporary slow down.

Price Trend

Chilli S4 Stemless

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