Chilli exports from the nation are likely to surpass the targets set by the Spices Board for 2007-08, given the favourable global situation. Exports for the first six months of 2007-08 have almost achieved the targets set for the whole year. In value terms, the exports for the six months stood at 74% of the target and in value terms, it came to 81%.
India exported 100,000 tonne of chilli es as against 58,285 tonne in the H1 of 2006-07, an increase of 72 %. In value terms, chilli exports rose 93 % to touch Rs 549.25 crore. The unit realization for chilli was Rs 54.93 per kg as against Rs 48.96 in the comparing period last year.
Spices Board outlook for the later half reveals that the nation is at an advantageous position. European nations have banned chilli exports from Pakistan due to the detection of pesticides and Pakistan may require a large portion of their September crops for internal consumption. After the lean production of last year, the new Chinese crop is scheduled to reach the market only by end of the year.
?Presently India is the main source of red chilli for international market,? board sources told FE. Moreover, the demand from the traditional buyers like Malaysia, Sri Lanka, Indonesia, and Bangladesh are on the increase.
On the domestic front, Faiyaz Hudani, research analyst of Kotak Commodity Services Ltd., expects that huge stocks will keep chilli prices under pressure. ?Arrivals in the spot market are around 40,000 on a daily basis while the demand is around 25,000 bags,? he said.
The new crop of Andhra Pradesh is expected to arrive in the month of January while the current stock in the state is estimated at 25 lakh bags, Faiyaz added.