Mumbai, April 23 (CommoditiesControl): Chilli prices in major markets continued to show downward trend, hitting multi-year lows as dull demand persisted in the face of increased arrivals. Market sources attribute the slump to excess inventory and higher-than-anticipated arrivals, dampening prospects for price recovery.
Despite expectations of reduced production due to severe drought conditions, quality improvements over the previous season resulted in nearly identical yields.
Arrivals at key markets like Guntur totaled 55,000 bags, marking a decline of 25,000 bags from the previous session. Meanwhile, Warangal and Khammam markets recorded 25,000 and 12,000 bags, respectively. Warangal experienced a decrease of 5,000 bags in arrivals, whereas Khammam witnessed a modest increase of 2,000 bags.
The prevailing market sentiment underscores a scenario where domestic demand remains low, while export demand fails to pick up, exerting further pressure on prices. Reports indicate that Bangladesh is diversifying its imports, turning to sources like Myanmar and China, thus diminishing its reliance on Indian chillies.
However, despite these challenges, the substantial drop in prices from multi-year lows is expected to act as a stabilizing factor in the upcoming trading sessions.
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