Chili Prices Show Weak Sentiment; Increased Arrivals Exerting Pressure

Mumbai, March 13 (Commodities Control): Chilli prices in major markets have continued to exhibit weakness across various varieties. Significant declines in prices have been observed in key markets such as Guntur and Khammam, with decreases ranging from Rs 500 to 1000 per quintal.

The surge in arrivals is exacerbating the downward pressure on prices, while subdued export demand further compounds the situation. Today, Warangal remained closed due to heightened arrivals, signaling an operational constraint in the summer market.

Arrivals at the Guntur and Khammam markets were reported at 120,000 and 40,000 bags, respectively, maintaining stability compared to the previous session. However, the reported arrivals have surpassed expectations, contributing to the downward trend in prices.

The combination of higher carry-in stocks and unexpectedly high supplies is anticipated to temper any aggressive price hikes. Consequently, prices are forecasted to remain stable to lower in light of the elevated arrivals. Additionally, the early coverage of requirements by many buyers, who anticipated lower production at the beginning of the season, might keep them sidelined from the market in the short term.