Chilli Prices Show Weakness Due to Low Demand and Higher Supply

New Delhi, February 23 (Commodities Control): Chilli prices in Guntur's major markets have been reported as weak, particularly for the most popular varieties, owing to subdued demand. Major varieties have witnessed a decline in prices by Rs 500-1000 per quintal. The markets in Khammam and Warangal remained closed due to the festival. The market update suggests that an unexpectedly higher supply is exerting pressure on prices. Additionally, weak export demand from Bangladesh is contributing to the overall bearish trend.

Teja Deluxe quintal prices in Guntur ranged between Rs 19,800 and Rs 20,000, marking a decrease of Rs 200 per quintal. Similarly, Teja reported quintal prices in the range of Rs 17,000 to Rs 20,000, experiencing a decline of Rs 500-800 per quintal from the previous session.

Arrivals in the Guntur markets were reported at 90,000, witnessing a significant drop of 60,000 bags from the previous session. This decline was more pronounced over the weekend. The reopening of the market after a four-day holiday resulted in a substantial increase in visitors, according to market participants.

The Department of Commerce released export data for December, revealing an increase in exports of whole and powdered forms. This growth is attributed to heightened imports from Bangladesh and Indonesia. Exports for the month were reported at 31,873 MT, reflecting a 6.6% year-on-year increase. The total exports from April to December stood at 2,89,642 MT, indicating a robust growth of 10.7% year on year.