Chili Prices Weaken Amidst Increased Arrivals and Reduced Export Demand

New Delhi, March 11 (Commodities Control): Chili prices are experiencing a downward trend in major markets, primarily attributed to higher arrivals and diminished export demand. The main varieties of chili in key markets such as Guntur, Khammam, and Warangal have reported a notable decline, with prices falling by Rs 400-1000 per quintal.

The surge in arrivals has intensified the pricing pressure, with Guntur markets witnessing a substantial increase to 120,000 bags, up by 30,000 bags from the previous session. Similarly, the Khammam market reported 40,000 bags, maintaining stability, while Warangal reported a significant uptick with 60,000 bags, marking an increase of 30,000 bags.

The higher-than-expected supply, coupled with an elevated carry-in, is anticipated to restrict aggressive price hikes. Analysts predict that prices will either remain stable or decrease further due to the ongoing influx of chili into the market. Additionally, the reduced export demand is contributing to the overall weakening of prices.

Buyers, having already covered their requirements at the beginning of the season in anticipation of lower production, may remain cautious and stay away from the market in the short term. This cautious approach from buyers further adds to the challenges faced by chili producers, as market trends continue to be influenced by the interplay of supply and demand factors.