Mixed Signals in Chili Prices; Increased Arrivals Impact Warangal Markets

Mumbai, March 14 (Commoditiescontrol): Chili prices across major markets have shown mixed trends, with Teja variety witnessing an increase in Guntur but a decline in Warangal. Prices in Warangal's key markets experienced a notable decrease of Rs 100 to 1,000 per quintal, largely attributed to a surge in arrivals coupled with subdued export demand.

Arrivals in the Guntur and Khammam markets were reported at 125,000 and 30,000 bags respectively. While Guntur saw an increase of 5,000 bags, Khammam witnessed a decline of 10,000 bags. Notably, the Warangal market recorded arrivals of 100,000 bags, significantly higher than expected, especially considering the closure of the market the previous day.

The arrival of higher arrivals, coupled with existing carry-in stocks, is anticipated to limit aggressive price hikes. Expectations suggest that prices may either stabilize or witness a slight decline due to the surplus supply. Additionally, many buyers preemptively covered their requirements at the beginning of the season, anticipating lower production, potentially sidelining them from the market in the short term.