The wholesale price of red chilli has been broken due to the market’s closure for about a month during the summer vacation. Traders have noted that the arrival of red chillies has decreased to about 80,000 bags compared to the daily arrival of one lakh bags in the past. The decrease in arrivals has resulted in a brake in the falling prices of red chillies.
Market veterans state that the market’s closure is another reason for stabilizing red chilli prices. The holiday period is from Friday, May 12, to June 10, and the business of red chillies is expected to be normal again from June 11. The higher-than-normal price of red chillies has impacted its exports, with a decrease of 9% in its export quantity in the April-February period of the financial year 2022-23. However, the export value has increased by 20%. According to the Spices Board, 4,59,849 tonnes of red chillies worth USD 1.24 billion have been exported from the country in the same period.
Meanwhile, the offtake of cumin has increased at an increased price, with a jump of one thousand rupees recently. The market sentiment is being affected by exporters’ activism, and in the coming days, there may be a slight increase in the spot. Overall, the closure of the Guntur shop during the summer vacation period has stabilized the falling prices of red chillies.
Thus, with a marginal increase in demand from stockists, sellers, and exporters, the costs will remain firm until the market reopens on June 11.
The chilli dried long red stemless prices were recorded at $3,10 per kg FOB.