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Subdued export demand, rainfall cool chilli prices by 15%.


Date: 30-09-2016
Subject: Subdued export demand, rainfall cool chilli prices by 15%
KOCHI: Subdued export demand, rainfall in Andhra Pradesh and expected good crop from Madhya Pradesh have pulled down prices of chilli, which had touched a new peak this year. The prices of the largest exported spice from India have dropped by 10% to 15% and the falling trend may continue in the coming weeks.

The chilli prices are currently hovering in the range of Rs 110 to Rs 125 per kg. “The high prices in the last few months had impacted exports. Good harvest in China also led to sluggish purchase by the country. Now the export demand has thinned considerably,” said AP Murugan, director of Paprika Oleos (India), a major exporter.

At present, chilli exports are limited to Sri Lanka and Bangladesh in small quantities. The weak export trend along with anticipated good crop from Madhya Pradesh could trigger a downward push in the prices, according to the traders.

Last year, Madhya Pradesh’s chilli crop fell short because of pest problems. Indian chilli exports had touched close to Rs 4,000 crore in 2015-16, a record.

Prices had peaked to a record Rs 150 per kg in February on concerns of output shortfall. This, however, led to a rise in the sowing area for chillies by 25% to 30% on an average.

Source : economictimes.indiatimes.com

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