Chilli prices may rise over production slump and Chinese demand

KOCHI: Chilli prices may go up after about two months due to a slump in production of India’s largest exported spice and an increase in demand from China.

The early assessment of the industry as the chilli harvest season has set in three weeks early in the principal growing region of Andhra Pradesh is that there will be a shortfall due to inadequate rains. Sunny weather has triggered an early onset of season which is now expected to get over by March, instead of April as it usually does.

"We expect 25-30 per cent drop in production this season despite an increase in acreage with chilli growing areas receiving poor showers. The rains have been insufficient in the catchment areas of Krishna and Godavari which irrigates the chilli-growing regions," said Ravipati Peraiah, managing director of Vijayakrishna Spice Farm.