Weekly Review-Red Chilli

07-Sep-2024 05:25 PM

Delay in sowing of red chilli due to adverse weather

New Delhi. Due to continuous rains in Andhra Pradesh and Telangana, the major producer of red chilli, sowing of red chilli is getting delayed. The sowing done earlier has also suffered damage. Farmers will now be forced to sow again. It is worth mentioning that due to the prices being lower than last year, this year, apart from Madhya Pradesh, the area of ​​sowing of red chilli in Andhra Pradesh and Telangana is also likely to be 30/35 percent less than last year. The weather has not yet cleared in Andhra Pradesh and Telangana. If the weather remains rainy in the coming days as well, then the area of ​​sowing may decrease further. Due to the delay in sowing, there will also be a delay of about 1 month in the arrival of new goods.

Prices rise

During the current week, the prices of red chilli have been quoted strongly. Although the arrival at the mandis of the producing centres was satisfactory, but due to the excess of low quality goods, the prices of deluxe goods increased. In Guntur mandi, the price of Teja quality was quoted at Rs. 188 with strength from Rs. 185. Whereas Khammam mandi has been closed for 4 days due to continuous rain. In Warangal also, the price of Teja quality was quoted at Rs. 182 at the end of the week. Whereas at the beginning of the week the price had opened at Rs. 175.

Slow-upward

Knowledgeable sources say that there is no possibility of slowdown in the current prices of red chilli. But this does not mean that there will be a one-sided rise in the market. In the coming days, the prices should remain between 5/10 rupees per kg slow-upward. Sources say that although it is true that this year red chilli has been sown on less area at the producing centres, but due to the record production last year, there is sufficient stock of red chilli at the producing centres. Due to high stock, there is a lot of red chilli coming in the markets at present.

High stock

According to the information received, currently the stock of red chilli in Guntur market is estimated to be 50/55 lakh bags, whereas last year during the same period the stock was 38/40 lakh bags. There is news of stock in Telangana being 28/30 lakh bags as compared to 18/20 lakh bags last year. The stock of red chilli at consumption centers is also more than last year.

Madhya Pradesh

Informed sources say that the arrival of new red chilli in the markets of Madhya Pradesh will start in the coming month. But the production will be less than last year. Because after sowing being less, the crop has also been damaged in the rains that happened in the past few days. It is estimated that this year the production of red chilli in Madhya Pradesh is being predicted to be 32/35 lakh bags whereas last year the production was estimated to be 40/42 lakh bags.

Price less than last year

Currently the price of red chilli is about 50/55 rupees per kg lower than last year. Last year at the beginning of September, the price of red chilli Teja in Guntur market was 250 rupees and in Khammam market it was 245 rupees per kg. Whereas in Warangal the price was quoted at 240 rupees. Currently the price of Teja in Guntur market is 188 rupees and in Khammam it is 194 rupees. In Warangal the price of Teja is quoted at 182 rupees. Currently the demand of exporters is also low.

Export decreased

Apart from weak demand from China, export of red chilli has declined due to limited buying from Bangladesh. According to the data released by the Spices Board, 78756.48 tonnes of red chilli was exported in April-May 2024. Whereas in April-May 2024, 103485.44 tonnes were exported. In the year 2023-24, the total export of red chilli was 601084 tonnes. In the year 2022-23, 524017 tonnes were exported and in the year 2021-22, 649815 tonnes were exported.