Red Chilli Prices Firm as Crop Arrivals Pick Pace; Teja Prices for 4th Straight Session

Mumbai (Commodities control) - Red chilli was quoted Steady-to-firm across the apex mandis of Guntur and Warangal on Wednesday. The export variety red chilli- ‘Teja’ was quoted unchanged from the previous session in Guntur and rose Rs 5/Kg in Warangal. The export variety chilli has been strong-to-steady in its price trend amid improved buying.

Guntur market registered arrivals of 30,000 bags today vs 20,000 bags on Wednesday. Most of the red chilli varieties were steady in Guntur. Meanwhile in Warangal mandi, red chilli varieties were generally firm while red chilli variety 334 shed Rs 5/Kg. It is to be noted that 341 variety of red chilli shot up Rs 5 and Rs 6 in Guntur and Warangal mandi respectively. Warangal mandi reported arrivals of 6,000 bags vs 7,000 bags of red spice in the last session.

Arrivals of the new crop are gradually picking pace as the season enters its peak harvest. The new crop has 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.