Andhra chilli turns hotter, exports hit

KOCHI: A host of factors like a lower inventory of premium quality chilli in Andhra Pradesh, poor harvest in Madhya Pradesh, the Telangana agitation and series of cyclones on the Andhra coast have raised the prices of chilli, hitting the export shipments.

The quantity dropped by 2.5% for six months ended September 30. Yet the value showed a rise of over 6% because of depreciation of rupee. The export of chilli, the largest shipped spice from India, has recorded consistent increase in the last few years. The local prices in the Guntur market, the premier centre for chillies, are ruling in the range of Rs 60-115 per kg for various varieties.

The average price works out to be higher thanRs 70-80 per kg prevalent last year. “High prices have prevented exporters from buying and stocking chilli.

They had hoped the arrivals from Madhya Pradesh will bring down the prices. But the crop is delayed and poor,” said Shailesh Shah, director of Jabs International, a top exporter.

The chilli crop from Madhya Pradesh arrives before the harvest in Andhra Pradesh. But this time, heavy rains have hit the crop and the elections have delayed the harvest.

“We understand the crop is down by 30 to 40 %. There is a shortage of good quality chilli as well,” pointed out Venkat Rosaiah, president of Guntur Chilli Merchants Association. The output from Madhya Pradesh is usually in the range of 45 lakh to 55 lakh bags (each bag of 40 kg).

According to him, there is a stock of 18 lakh bags in the cold storages of Guntur, of which 50% is from last year and of poor quality. The rest is just above average quality. “So, at present there is a shortage of premium quality chillies, which has increased the prices. The premium quality Teja is ruling in the range of Rs 95-115 per kg,” he said.