Red Chilli: 'Teja' Declines Rs 4-7/Kg in Guntur, Warangal; Market Awaits Quality Arrivals

Mumbai (Commodities control) - Prices of most of the varieties of chilli in Guntur and Warangal were quoted weak. The export variety red chilli- ‘Teja’ lost Rs 4 per Kg in Guntur and shed Rs 7 per Kg in Warangal amid reduced arrivals and pale demand.

Guntur market registered arrivals of 6,000 bags on Tuesday vs 10,000 bags in the last session. Here DD and 4884 red chilli varieties gave up Rs 2-5 per kg in Guntur. Meanwhile in Warangal mandi, 341 lost Rs 3 per Kg amid arrivals of 5,000 bags vs 7,000 bags of red spice.

Arrivals of the new crop are expected to gradually pick up pace as the season enters its peak harvest starting mid-January.

The new crop has already started coming into the key wholesale markets of Andhra Pradesh, Telangana, Karnataka and Madhya Pradesh and the arrivals are likely to peak over the coming weeks.

Apart from supply pressure of the new crop, ample carry forward stocks due to low consumption and expectations of a bigger crop in the current season are also seen pushing prices down in the near future, market experts said.

India's chilli production in the current season 2020-21 (Jul-Jun) is seen at 1.7 mln tn, 10-15% higher than the previous year, according to trade estimates.

Andhra Pradesh is the top chilli producer, accounting for around 45% of the country's crop, followed by Telangana, Karnataka, Madhya Pradesh and Maharashtra. And the carry forward stocks of Andhra Pradesh and Telangana combined are projected at 120,000-140,000 tn, according to trade estimates. There are hardly any stocks left in Madhya Pradesh.

Demand for the new crop is currently subdued due to high moisture content, and traders are waiting for the quality of arrivals to improve.