Compared to the forecast, there is a slight delay in the arrival of the monsoon in the country. But despite the earlier prediction, there is a sluggishness in the market for red chilies. However, according to market experts, there will be no further price drop for the spice. Instead, it will remain stable.
Current Scenario
The main reason chili prices won’t undergo bearish sentiment is the 25-30 percent drop in production. In addition, the infestation due to the thrip decreased the yield, and the overall quality of the crop dropped.
Farmers used high doses of pesticides to control the infestation; hence the availability of pesticide residue-free crops is limited. It has affected the export of chilies for the first quarter of 2022.
But with average domestic demand, the sentiment is expected to remain stable.
No. 334 red chilies variety remained at the pre-closed level of $2,38 per kg because of the lack of active buyers in the market. There was recently a dip of $0,02 per kg.
Future
According to market experts, the summer vacation in Guntur affected the market. The work is expected to resume on June 14, and though it can impact the prices a bit, the price will remain stable for red chilies in the next couple of days.
Also, there won’t be any prolonged recession in the spot market for the red chilies even after the reopening of the maker as the summer vacation ends.
Price Trend
Chilli S4 Stemless price is 2,40$ FOB as of now.