Chilly Prices Remain Weak Amidst Rise in Supply and Subdued Export Demand

Mumbai, February 26 (CommoditiesControl): Chilly prices in major markets continue to witness a decline for the prominent varieties, primarily influenced by a surge in supply coupled with diminished export demand. The prices for major varieties have experienced a notable drop, ranging from Rs 500 to 1000 per quintal. Notably, Khammam reported a decline in prices, while Warangal witnessed an upward trend.

Market updates suggest that a higher-than-expected supply is exerting pressure on prices. Additionally, the low export demand from Bangladesh is contributing to the downward trend. However, there is a slight recovery in prices for Teja Deluxe after a significant fall in the preceding week.

In Guntur, Teja Deluxe prices per quintal ranged between Rs 20,300 and Rs 20,500, reflecting an increase of Rs 500 per quintal. On the other hand, Teja reported prices ranging from Rs 17,000 to Rs 20,000, remaining unchanged from the previous session.

The arrivals at the Guntur markets were reported at 170,000 bags, marking an increase of 80,000 bags from the previous session. The significant improvement in arrivals is notable. Khammam and Warangal markets, which were closed for 2-3 sessions, reopened with arrivals reported at 60,000 and 45,000 bags, respectively.

Meanwhile, the Department of Commerce released its December export figures. The report indicates a year-on-year increase in exports of both whole and powdered forms, driven by heightened imports from Bangladesh and Indonesia. December exports were reported at 31,873 MT, marking a 6.6% increase year-on-year. The cumulative exports from April to December totaled 2,89,642 MT, reflecting a 10.7% increase compared to the same period the previous year.