Red Chilli Prices Rebound amid Lower Level Buying, 'Teja' Rises Rs 7/Kg

Mumbai (Commodities control) - Red chilli bounced back on Wednesday, after days of weakness, in Guntur and Warangal mandis. The export variety red chilli- ‘Teja’ was Rs 7 per Kg stronger in Guntur and steady in Warangal amid rising arrivals and improved demand.

Guntur market registered arrivals of 20,000 bags vs 6,000 bags on Tuesday. Most of the red chilli varieties rose Rs 5/Kg in Guntur. Meanwhile in Warangal mandi, red chilli varieties 341 and Wonderhot rose by Rs 1-7 per Kg amid arrivals of 7,000 bags vs 5,000 bags of red spice.

Arrivals of the new crop are expected to gradually pick up pace as the season enters its peak harvest from 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.

However the market is wary off 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.

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.