Weekly Review-Red Chilli

10-Aug-2024 06:15 PM

No chance of increase in Red Chilli

New Delhi. During the current week, the prices of red chilli remained in a limited range. It is worth mentioning that China's buying of red chilli was already weak. Recently, due to the political crisis in Bangladesh, the demand from Bangladesh has also decreased. Due to which the export trade is getting affected. But sources say that after the situation improves in the coming days, the demand will increase. But even after the increase in demand, there is no possibility of much increase in prices. Traders believe that if the demand increases in the coming days, the prices may increase by 10/15 rupees. There is no possibility of more increase than this. Because due to record production in the country during the current season, the stock is sufficient at the consumption centers as well as the markets of the producing centers. It is worth mentioning that during the current season, the red chilli production in the major producing state Andhra Pradesh was more than 2 crore bags (each bag is 45 kg). Apart from this, production in Telangana was also estimated to be 80/85 lakh bags. Production in Karnataka was also higher than last year.

Less sowing

At present, due to the lower prices of red chilli in the markets of the producing centers being quoted at about 35/40 rupees per kg compared to last year, there are reports of sowing of red chilli at the producing centers being less than last year. Sowing of red chilli has been completed in Madhya Pradesh and sowing has been 20/25 percent less than last year. Sowing work is going on in full swing in Andhra Pradesh and Telangana, but there are reports of sowing area being 25/30 percent less than last year. Arrival of new red chilli in Madhya Pradesh will start in the month of October. Whereas, arrival in Andhra Pradesh and Telangana will start in the month of January-February.

Stock

Due to higher production during the current season, the stock of red chilli in the mandis of the producing centres is considered to be more as compared to last year. At present, the stock of red chilli in Guntur mandi is estimated to be 55/60 lakh bags whereas last year during the same period the stock was of 40/45 lakh bags. In Telangana, it is believed to be of 32/35 lakh bags whereas last year the stock was of 20/22 lakh bags.

Higher arrival

Stockists are maintaining selling pressure in red chilli to lighten their stock. At present, the average daily arrival of red chilli in the major mandi Guntur is 60/70 thousand bags whereas the trade is of 30/40 thousand bags. Due to the sentiment not being bullish, the local trade is also less. Export demand has also decreased. In Warangal and Khammam mandis also, the average daily arrival of red chilli remains at 14/15 thousand bags.

Not much increase

Informed sources say that there is no possibility of much increase in the current prices of red chilli, provided the weather remains favorable for the crop in the producing states of Madhya Pradesh, Andhra Pradesh and Telangana in the coming days. Traders believe that apart from the stock being sufficient, the arrival of red chilli will also start in Madhya Pradesh in the month of October. If the export demand increases, then a rise of 10/15 rupees per kg in prices is possible. Currently, the price of red chilli Teja in Guntur Mandi is being quoted at Rs 185 and Rs 195 per kg in Khammam.

Export

Due to weak export demand, in the first two months of the current season, April-May 2024, 78756.48 tonnes of red chilli was exported, whereas in April-May-2023 last year, 103485.44 tonnes were exported. In the year 2023-24, the total export of red chilli was 601084 tonnes. In the year 2020-21, the record export of red chilli was 649815 tonnes.