Weekly Review-Red Chilli
15-Jun-2024 07:32 PM
Red chilli prices strong: Sowing of red chilli to decrease in Madhya Pradesh
Mumbai. After a holiday of almost a month, the trading of red chilli has started in Guntur and Khammam Mandi during the current week. But due to weak demand from China, the prices have not increased as expected. However, the buying from Bangladesh is going on as usual. At present, the arrival of farmers' goods at the production centers has remained very low. The quality of the goods that are coming is also very low. Most of the arrival is of cold goods and exporters are also buying cold goods. At present, traders from Bangladesh are buying Teja quality from Guntur Mandi at the price of Rs 190/200. Whereas at the beginning of the week the price opened at Rs 185/190. Market sources say that there is no possibility of a slowdown in the current prices. Prices may rise in the coming days if exports increase but due to high stock at production centres, there is no possibility of much rise in the market. Sources believe that after China's buying, prices may rise by 10/15 rupees per kg.
It is worth mentioning that during the current season, the production of red chilli in the major producing state Andhra Pradesh is estimated to be around 2 crore bags whereas last year the production was around 1.50 crore bags. Telangana's production is also estimated to be 80/85 lakh bags (each bag - 45 kg) this year as compared to 55/60 lakh bags last year. Due to high production, the stock of red chilli in the markets has also increased this year as compared to last year.
Incoming
Informed sources say that due to about 80/85 percent of the total production coming to the markets, the arrival of farmers' goods in the markets has remained quite low. The arrival of farmers' goods in Guntur market is only 10/15 thousand bags whereas in Khammam and Warangal, it is 1500/2000 bags. The arrival of cold goods in Guntur market is 55/60 thousand bags and in Khammam and Warangal, it is 8/10 thousand bags.
Stock
Due to higher production during the current season, the stock of red chilli in the markets of the producing centers has increased compared to last year. According to the information received, the stock of red chilli in Guntur, the main market of red chilli, is believed to be 65/70 lakh bags whereas in Khammam and Warangal markets of Telangana, the stock is reported to be 38/40 lakh bags.
Low prices
Currently, the prices of red chilli in the markets of producing centers are about 40/45 rupees per kg lower compared to last year. It is noteworthy that in the first fortnight of June last year, the price of red chilli Teja in Guntur market was Rs 245, which is currently being quoted at Rs 200. In Khammam market also, the price of red chilli Teja was Rs 242 last year, which is currently being quoted at Rs 200.
Madhya Pradesh
Knowledgeable sources say that the roll of red chilli has been prepared in Madhya Pradesh and the transplantation work will start by the end of the current month. According to the information received from the traders of Bedia, this year the sowing of red chilli in Madhya Pradesh will be 20/25 percent less than last year. Because in the last season the producers did not get a fair price for their produce. Sources believe that this year farmers will sow chickpeas and cotton in the fields after plucking green chillies. Due to which the production of red chilli will be affected. Last year, due to the red chilli crop not getting affected by the virus in Madhya Pradesh, both quality and production were better. Last year, the production of red chilli in Madhya Pradesh was around 40/42 lakh sacks.
Export
Due to the low prices of red chilli during the current season, the export of red chilli registered an increase of 15 percent. According to the data released by the Spices Board, during the year 2023-24 (April-March), 601084 tonnes of red chilli were exported. Whereas during the year 2022-23, the export was 524017 tonnes. It is noteworthy that during the year 2020-21, the record export of red chilli was 641815 tonnes.