Chili Prices Remain Weak Despite Decline in Arrivals

Mumbai, March 28 (Commodities Control): Chili prices in major markets, notably Guntur, Warangal, and Khammam, have continued to trade weak despite a decrease in arrivals. Reports indicate that prices across various varieties have remained low, with notable volatility observed in recent days, marked by sharp fluctuations in arrivals. Despite brief spikes, prices for varieties like Teja and Teja deluxe concluded lower. The primary factors exerting downward pressure on prices include subdued export and domestic demand.

Arrivals at the Guntur market were estimated at 100,000 bags, representing a decrease of 20,000 bags, while Khammam market arrivals witnessed a slight increase of 5,000 bags. In Warangal, arrivals stood at 35,000 bags, down by 5,000 bags compared to the previous session.

The market sentiment indicates that prices are facing pressure due to increasing carry-in and supply surpassing expectations. However, it's worth noting that prices have already experienced significant declines from their previous highs. Looking ahead, prices are anticipated to stabilize or possibly strengthen in the future.

In other news, the Ministry of Commerce released export figures for January, revealing a slight decrease of 0.5% compared to the previous year, with exports totaling 35,796 metric tons. However, the cumulative exports between April and January recorded a year-on-year increase of 5.8%, reaching 3.25 lakh tons. The dip in monthly exports is primarily attributed to reduced imports to China, which witnessed a notable decline of 29.2% year on year.