Red Chilli Gains More Than Rs 220 On NCDEX.

Red spice gained sharply in the early trading session in the commodity exchanges on fresh buying triggered by growth in the export demand and projected lower crop.

The benchmark April contract on NCDEX surged by Rs. 224 or 2.62% to the session high of Rs. 8776 per 100 kg. The open interest added 0.93% to 7020 tonnes, indicating fresh buying.

Exports of spices and spices products from India have registered an increase of four per cent in volume and 19 per cent in terms of value during April-February 2010-11. In dollar terms the rise in exports is 24 per cent.

Exports of chilli, ginger, fennel, garlic and other spices such as asafoetida, tamarind etc. have shown an increase both in volume and value during April- Feb 2010-11 as compared to April-February 2009-10.

During April-February 2010-11, a total quantity of 2,18,500 tonnes of chilli valued Rs. 1379.52 crores have been exported as against 1,80,750 tonnes valued Rs. 1156.57 crores of last year, registering an increase of 21 per cent in quantity and 19 per cent in value.

Chilli (Capsicum annuum) was introduced in the Indian sub-continent in the 16th century and has become an integral part of Indian culture and cuisine. Reported to have originated in South America, it is widely distributed in all tropical and sub tropical countries of the world.

World trade of chilies stands at approximately 0.5 mt with an approximate value of $990 million. The US is the leading chilli importer accounting for nearly 20 per cent of the world imports followed by Malaysia (10 per cent) and Mexico (nine per cent). Top chilli exporting countries of the world are India (37 per cent), China (25 per cent) and Peru (11.5 per cent). Chilli contributes to about 40 per cent of total spice exports from the country.

As per market sources, the total chilli production of the current year (2010-11) is likely at 250 lakh bags (1 bag = 40 kgs), down 16% from the last year. This was mainly due to unseasonal rainfall during the crop formation period in major chilli producing states such as Andhra Pradesh and Maharashtra.

Chilli is extensively used as spice in curries and as an ingredient in powder form for seasonings. Besides being used as natural colourant, it also has a tonic and carminative action. As a medicine, it is used as a counter irritant in Lumbago, Neuralgia, and rheumatic disorders. The enzyme isolated from chilli is used in the treatment of certain type of cancers. Oleoresin extracted from chilli is used in pain balms and vapour rubs.

Source : indiainfoline.com