Red Chilli Prices Rise 10-15% in Guntur amid Higher Demand; Mkt Eyes Premium Quality Supplies

Mumbai (Commodities control) - Red chilli prices surged higher for the second straight session on Tuesday amid rising demand and weak arrivals in Guntur today. All the chilli varieties at Guntur and Warangal mandis rode higher today.

Traders reveal that prices of red chilli has gone up by 10 to 15 per cent per quintal due to increase in demand during this season. Almost all the varieties of red chillies are selling at Rs 12,000 to 16,000 per quintal in Asia's biggest Guntur Mirchi Yard. Prices are expected to remain firm.

At present, Teja variety of quality red chillies are quoted close to Rs 14,800 per quintal which were sold at Rs12,000 per quintal during the same period last year.

Due to unexpected and sudden rains during September and October, the chilli crop was damaged in the State. Farmers uprooted the damaged chilli gardens in 10% of the area. Cyclones also damaged the chilli gardens. As a result, the demand for quality red chilli increased.

Guntur mandi witnessed arrivals of 120,000 bags vs 140,000 bags in the last session. Despite reduced arrivals today, the mandi arrivals have increased since early last week. All the chilli varieties in Guntur priced were Rs 1-5/Kg higher. Chilli prices have gained nearly Rs 3-13/Kg for different varieties since Monday.

Meanwhile in Warangal, prie rise was sharper as compared with Guntur. Export variety ‘Teja’ shot up by Rs 8/Kg, while ‘Tomato’ variety gained Rs 10/Kg amid arrivals of 45,000 bags.

Last week, Prices of chilli rose in Guntur, Andhra Pradesh, primarily due to firm bulk demand from local and overseas buyers amid lower arrivals. According to the traders, demand is expected to remain firm ahead of Holi and prices are seen rising over the next few days

There has been good demand from local stockists, while poor-quality arrivals in new crops are also supporting prices.