Steady Sentiment Prevails in Chili Prices Despite Lower Yields

Mumbai, February 16 (CommoditiesControl): Major chilli markets in Guntur reported a mostly steady sentiment in prices, with the field update indicating stability despite lower yields. The current season is expected to yield excellent quality chili, attributing this to a lower proportion of whites compared to the previous season, which has surpassed market expectations and exerted pressure on prices.

In Guntur, a key chili-producing region, Teja Deluxe quintal prices ranged between Rs 20,300 and Rs 20,500. Similarly, Teja reported quintal prices ranging from Rs 17,000 to Rs 20,500, remaining unchanged from the previous session. Notably, prices for Syngenta and 2043 witnessed a decline, dropping by Rs 500 and Rs 1,000 per quarter, respectively.

Despite the lower yields, the market update suggests that the chili crop this year is of excellent quality. The lower proportion of whites has contributed to a higher yield than initially anticipated, putting pressure on prices. The markets in Khammam and Warangal were closed due to the festive holiday, impacting overall trading activities in the region.

Guntur, however, experienced a significant drop in arrivals, receiving 70,000 bags, down by 30,000 from the previous session. Arrivals were reported to be one-third of the volume witnessed at the beginning of the week. Market participants attribute the lower arrivals to declining prices combined with the ongoing festive season, which has influenced growers and traders alike.