Chilli prices are getting hotter due to supply squeeze and rising
demand. The prices of the largest exported spice from India are
hovering, 20 per cent more than the prices a year ago, and may
race to a new high depending on the demand, trade insiders say.
Chilli crop was down by 15 per cent-20 per cent due to erratic
rains last year. This along with high export demand in the end of
2014-15 seems to have dried up the stock.
The annual chilli production in the country is about 13-14 lakh
tonne. Rising prices have led to hoarding, which in turn affects
supply and boost prices further.
"About 75 per cent of the available stock is with the traders and
only the rest is with the farmers," "Heavy purchase by China and Bangladesh
last year has created pressure on the stock and has lifted the
price.But if India gets good rainfall in the coming weeks, the
prices will cool."
This time it remains to be seen how export will pan out. "The
sowing for the next Chinese crop in October is high, indicating a
better crop unlike last year. But China's domestic chilli
consumption has gone up so much that its production is
insufficient to meet the demand and hence they are forced to buy
from other sources like India,"
Meanwhile, keeping with the national trend of opting for crops
with high paying potential, farmers are expected to increase area
under chillies.
There has been good demand for chilli seeds right from the onset
of the monsoon across prominent chilli growing states
