Chilli output may miss target on untimely rains
The chilli production in the country is likely to miss not only the projected target of 12 lakh tonne in 2007-08, but it could be below the last year’s level as well, as untimely rain has damaged 20-25% of the crop, sources in Spices Board said.
By PTI |
NEW DELHI: The chilli production in the country is likely to miss not only the projected target of 12 lakh tonne in 2007-08, but it could be below the last year���s level as well, as untimely rain has damaged 20-25% of the crop, sources in Spices Board said.
Market analysts who have pegged the loss at 15-20% due to the rain said below-than-expected output could send the prices soaring in near-term. ���Andhra Pradesh is the worst hit by rains, where the crop damage is estimated to be higher compared to Karnataka and Tamil Nadu.
We expect the total loss to be about 20-25%,��� a Spices Board senior official said. Last year, production stood at 10.5 lakh tonne while this year only 70,000 tonne may be achieved, he said, adding that the rain has affected both standing as well as harvested crop. ���Our field person is gauging the actual loss and the picture would be clear in another two days,��� he added.
However, market analysts have pegged the crop less at 15-20%. Karvy Comtrade analyst Veeresh Hiremath said: ���Even though production was expected to be higher this year, rains in January, and it is raining even now, is affecting the crop. According to reports, there may be about 15-20% of crop loss.���
He said heavy rains are disturbing the chilli supply in the market. Arrivals have declined to 40,000 bags from 1.3 lakh bags on Monday. While the volumes on exchanges have slipped to 50 lots as compared to 300 lots on an average trading day. Besides supply, the quality has also affected and added that all these have prompted prices to move northward on Monday.
Prices have hit the 4% upper circuit both at spot and futures market, he noted.
The chilli prices would remain at higher level in the coming days due to fall the output as well as lack of quality chilli arrival in the market, analysts said. Andhra Pradesh, which occupies 49% share in the country���s total production, is the leading chilli-producing state followed by Karnataka, Maharashtra, Orissa, Rajasthan and Tamil Nadu.
Market analysts who have pegged the loss at 15-20% due to the rain said below-than-expected output could send the prices soaring in near-term. ���Andhra Pradesh is the worst hit by rains, where the crop damage is estimated to be higher compared to Karnataka and Tamil Nadu.
We expect the total loss to be about 20-25%,��� a Spices Board senior official said. Last year, production stood at 10.5 lakh tonne while this year only 70,000 tonne may be achieved, he said, adding that the rain has affected both standing as well as harvested crop. ���Our field person is gauging the actual loss and the picture would be clear in another two days,��� he added.
However, market analysts have pegged the crop less at 15-20%. Karvy Comtrade analyst Veeresh Hiremath said: ���Even though production was expected to be higher this year, rains in January, and it is raining even now, is affecting the crop. According to reports, there may be about 15-20% of crop loss.���
He said heavy rains are disturbing the chilli supply in the market. Arrivals have declined to 40,000 bags from 1.3 lakh bags on Monday. While the volumes on exchanges have slipped to 50 lots as compared to 300 lots on an average trading day. Besides supply, the quality has also affected and added that all these have prompted prices to move northward on Monday.
Prices have hit the 4% upper circuit both at spot and futures market, he noted.
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At 1300 hours, April delivery of chilli at NCDEX counter rose by 4% to Rs 4,325 a quintal from Rs 4,158 a quintal in the last week, he said. , adding that spot prices increased to Rs 3,800 per quintal from Rs 3,000 a quintal on Monday.The chilli prices would remain at higher level in the coming days due to fall the output as well as lack of quality chilli arrival in the market, analysts said. Andhra Pradesh, which occupies 49% share in the country���s total production, is the leading chilli-producing state followed by Karnataka, Maharashtra, Orissa, Rajasthan and Tamil Nadu.
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