The chilli market is witnessing selling pressure, with farmers desperate to liquidate their stocks at the current prices. Traders and analysts estimate the market to ease further as arrivals increase in the market. Export and domestic demand is lower due to the higher prices prevailing in the market and cheaper competition from China.
Naval Khaitan, a prominent trader and exporter from Guntur told FE that prices would decline as supplies increase in the market. ?Farmers want to sell their stocks at the current market prices and are dipping into their inventory. Export demand is not there at the current prices,? he said. ?Chinese chilli is cheaper in the global market and it is reported that they have a good crop in the current season,? he added.
Exports of the commodity are a key factor in pricing. Higher exports always translate into higher domestic prices due to the lesser availability of the commodity. China is major competitor in the global chilli market. During the April-January period of the current financial year, a total quantity of 2,00,000 tonne of chilli valued R1,255.52 crore have been exported as against 1,63,750 tonne valued R1056.67 crore of last year, registering an increase of 22% in quantity and 19% in value.
P Raghu Ram, principal investigator of agricultural market intelligence centre (AMIC) of Acharya N G Ranga Agricultural University (ANGRAU) feels that the market would remain firm as European demand for Indian chilli is very much active. ?There are reports of active sourcing for European market and other Asian markets. Demand is very good,? he said.
