| Date: |
10-08-2011 |
| Subject: |
Chilli Drops On Weak Export Demand, Weak Spices Complex |
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The NCDEX Red Chilli pared the last trading session's gains as traders liquidated their long positions triggered by weak export demand and due to the weak sentiment in the spices. The NCDEX August Chilli ended the last session up by 1.83% at Rs. 8794 level.
The benchmark August contract tumbled by Rs. 350 or 3.98% to the session low of Rs. 8444 per 100 kg. The contract is currently trading at Rs. 8592, down by Rs. 202 or 2.29% over the last close. The open interest dipped 2.77% to 15225 tonnes, indicating profit taking.
Chilli 334 price was up by Rs. 100 to Rs. 9,100 per quintal in the Guntur spot market with the total arrivals steady at around 35,000 bags (2,000 bags of Khammam teja).
As per the latest release from the Spices Board of India, Red Chilli exports decreased 37% to 40,500 tonnes while revenue declined 6% to Rs. 36,575 lakh during April- June 2011.
Forex revenue from exports of spices and spices products from India during April-June 2011 registered a rise of 21 percent while the tonnage declined by 26 percent. A total of 116,900 tonnes of spices and spice products valued Rs. 1885.24 crores (US$421.55 Million) has been exported during April- June 2011 as against 157,850 tonnes valued Rs. 1560.47 crores (US$ 342.28 Million) in 2010. In dollar terms , the increase in revenue is 23 percent.
However, tight supply position is likely to add bullish cues in Chilli futures in the coming days. Chilli sowing is down so far at 0.19 hectare as on 03rd August 2011 against 0.38 hectare same period last year. This was mainly on the back of waning sowing progress in major chilli producing areas such as Guntur , Rayalaseema and Nagalonda due to deficit rainfall so far in the current year. Moreover, prices were also guided by possible decline in total stock position in major mandis as chilli crop has reported over 25% shortfall in the last year. Therefore, decline in chilli production in the previous year might witness some supply tightness in the coming days.
Source : indiainfoline.com
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