Prices have moved up sufficiently in the past few days and now it is likely to stabilize at this level. It is true that our production is lower by 40% but we have adequate supply in our cold storages. The shortfall in production will be reflected in the market only after two months, chilli trader Peraiah Ravipati from Bellary told FE. Spot market prices at the Guntur have increased by 25 % from R5,241.5 per quintal on December 31, 2012 to R6,529.55 per quintal on March 14.
Kotak Commodity Services reports that chilli sowing is 40.14% lower compared to last year and the there are 55 lakh bags of red chilli in Andhra Pradesh cold storages. Production during 2011-12 is estimated around 15 lakh tonne. The new crop yield is also not encouraging due to climatic conditions.
N Raveendaran, national consultant of National Agricultural Innovation Project (NAIP) of Tamil Nadu Agricultural University (TNAU) feels the market would remain stable until June. It is reported that China has a very good crop. Our export orders are lower when compared to last year. Unless we export a good volume, our prices are likely to stick at this level due to the supply situation, he said. Higher exports always translate into higher domestic prices due to the lesser availability of the commodity. During the last FY, chilli exports stood at 2,41,000 tonne of exports worth R2,144.08 crore.
China imported nearly 40,000 tonne of Teja last year. Border trade with Pakistan is also not encouraging this year, Peraiah Ravipati said.