Chilly Prices Encounter Weak Sentiment in Major Markets

Mumbai, Feb 15 (Commoditiescontrol): Chilly prices in major markets are reportedly facing a weak sentiment, from stability to weakening trends. The market is grappling with low demand coupled with increased arrivals.

Despite expectations of lower overall yields compared to the previous season, the proportion of whites is notably reduced from the previous year. This suggests that net yields are anticipated to remain higher than initially expected, creating a scenario where farmers' net yields surpass market expectations, consequently exerting downward pressure on prices.

While the majority of chilly varieties are reported to be inexpensive, the 334, Teja, and Teja Deluxe varieties are holding stable. Market participants are optimistic about the future, anticipating sustained demand from both exporters and domestic consumers, which is expected to contribute to price stability. The extended dry spell is predicted to lead to reduced production, providing additional support to prices. Concerns about poor crop development may result in a shorter harvest season, with harvesting expected to conclude in March instead of the usual May timeframe.

In Guntur, Teja Deluxe quintal prices traded between Rs 21,000 and Rs 22,000, while Teja quintal prices ranged from Rs 17,500 to Rs 20,500, remaining stable from the previous session. However, prices in Warangal and Khammam experienced a decline of Rs 300 to Rs 1,000 per quintal.

Market trends indicate Guntur receiving 100,000 bags, consistent with the previous session, with half of the arrivals aligning with the figures from the previous week. Khammam reported 45,000 bags, reflecting a 5,000-bag increase, while Warangal reported 60,000 bags, maintaining stability compared to the previous session. Despite lower arrivals compared to the previous week, prices witnessed a decline as purchasing activity was reported to be dull.