Chilli Prices Remain Stable to Weak Amid Adequate Rainfall and Supply

Mumbai, June 24 (Commodities Control): Chilli prices across the market have been reported as stable to weak, primarily due to inactive buyers and sufficient rainfall in key growing regions. Sources indicate that the demand for chillies is currently dull, with no significant reduction in acreage anticipated despite earlier concerns.

The unexpected increase in seed sales has contributed to this stability, potentially reducing the acreage by around 10% even in the face of sharply dropping prices. This suggests that farmers are still committed to planting, anticipating a steady market despite current conditions.

In terms of arrivals, the market saw substantial activity. A total of 93,000 bags of chillies arrived, with the bulk sourced from cold storage facilities. Guntur alone reported 75,000 bags, an increase of 10,000 from the previous session. Warangal saw arrivals of 10,000 bags, up significantly from 4,000 in the prior session. Additionally, non-A/C bag arrivals were expected to range between 20,000 and 24,000 bags per market.

Market analysts suggest that prices are likely to remain range-bound with a short-term downward bias. This expectation is due to the adequate supply, bolstered by full cold storage facilities, and low export demand, which together are likely to prevent any aggressive price increases in the near future.

Overall, the chilli market is currently characterized by ample supply and subdued demand, creating a stable yet weak price environment.