Chilli prices are soaring to new heights, owing to dipped supplies, following the fire mishap at Guntur market. According to market sources, the prices are ruling at Rs 50 per kg to Rs 90 per kg depending on the variety and quality.
Following the fire that destroyed about 2 lakh bags in Guntur, a price rise has been triggered for chillies in other markets like Warangal, Khamam, etc. ?It is just an opportunity the traders in other markets are exploiting,? says the market sources in Guntur. According to them, the Guntur market is expected to open on Monday, May 12, which may enhance the supplies effecting price correction.
Speaking from Guntur, the Chilli Merchants? Association president K Rosaiah said that there is a price spurt of about 10% to 15% in other markets due to the closure of Guntur market. ?It is just 2 lakh bags that were burnt at the fire tragedy. It will not effect much on the supply side, since we expect about 1 crore bags of 40 kg each to arrive at Guntur market alone during the current season,? Rosaiah said. He felt the price rise will be a temporary phenomenon and the prices will come back to normal levels soon.
While the market anticipate about 15-lakh tonne production in the current year, as against 12 lakh tonne produced in the previous year. However, due to untimely rains, which washed away the crop, which is estimated to be at 30% to 35 %, the supply pressure had already pushed the prices to higher levels. And now, with the present fire mishap supply position has been further reduced by another 20 to 25%. Thus, the final production estimated to reach the market would be in the order of about 10 lakh tonne to 11 lakh tonne, the market sources said.