Chili Prices Continue to Decline Amidst Lower Demand

Mumbai, March 15 (CommoditiesControl): Chili prices have continued their downward trend in major markets, influenced by subdued demand and higher-than-anticipated arrivals. Despite this trend, Teja prices have maintained stability across various markets. Additionally, the sluggish export demand has further exacerbated the pressure on prices.

Reports indicate that major chili markets have witnessed a significant decline in prices due to the imbalance between demand and supply. Guntur and Khammam markets recorded arrivals of 75,000 and 30,000 bags, respectively. Notably, Guntur experienced a substantial decrease of 45,000 bags, while Khammam markets remained relatively stable. Warangal market reported arrivals of 35,000 bags.

The surplus carry-in from previous seasons, coupled with the unexpected surge in supply, is anticipated to restrain any aggressive price hikes in the near future. Market analysts predict that prices will likely remain stable or even decline further due to the higher-than-expected arrivals.

Furthermore, the situation is compounded by the fact that many buyers had already stocked up on chili at the onset of the season, anticipating lower production levels. This preemptive action by buyers is expected to keep them on the sidelines in the short term, contributing to the subdued demand scenario.

Overall, the chili market is currently facing multiple challenges, including oversupply, tepid export demand, and cautious buyer behavior.