Red chilli flares up on export ties
Red chilli has become hot again. Its price has appreciated by Rs 2 per kg to Rs 42 per kg over the past three days in the wholesale market of Guntur.
By Ratna Ganguli, TNN |
KOLKATA :Red chilli has become hot again. Its price has appreciated by Rs 2 per kg to Rs 42 per kg over the past three days in the wholesale market of Guntur, the spice's principal trading hub. Although the crop outlook is better this year, expectations of greater opportunities for exports, especially to Bangladesh, have fired the market. Market sources said this has prompted stockists to beef up their stock position. A dip in the stock at warehouses of NCDEX to a meagre 1,180 tonnes has added to the firm trend.
Riding on a bullish sentiment, the futures price of the benchmark red chilli variety, Guntur (LCA 324), shot up to nearly Rs 49 per kg for the August contract. However, the firm trend for the September contract got somewhat checked, pushing the price down to Rs 45 per kg.
This indicates that red chilli prices may start falling in September from the present level on back of adequate chilli stocks at mandis in Guntur and adjoining areas of Andhra Pradesh, said a Angel Commodities’ analyst.
Old stock and a better crop outlook for 2007 is expected to maintain prices in a range of Rs 44-46 per kg in September-October. Chilli exports to Bangladesh normally picks up after October.
According to preliminary estimates, red chilli crop in 2007 is estimated to go up 10-15% over last year's crop of 8.5 lakh tonnes due to a rise in acreage in red chilli cultivation in two of the main producing states — Andhra Pradesh and Madhya Pradesh. In 2007, about 1.80 lakh hectares have been brought under chilli cultivation in Andhra Pradesh against last year's coverage of 1.60 lakh hectares. Area under chilli cultivation in Nimad in Madhya Pradesh has gone up 50-70%. With this, chilli output in the largest chilli producing area of the state is projected to rise 15% to 30-32-lakh bags of 40 kg each or 1.2 lakh tonnes.
Riding on a bullish sentiment, the futures price of the benchmark red chilli variety, Guntur (LCA 324), shot up to nearly Rs 49 per kg for the August contract. However, the firm trend for the September contract got somewhat checked, pushing the price down to Rs 45 per kg.
This indicates that red chilli prices may start falling in September from the present level on back of adequate chilli stocks at mandis in Guntur and adjoining areas of Andhra Pradesh, said a Angel Commodities’ analyst.
Old stock and a better crop outlook for 2007 is expected to maintain prices in a range of Rs 44-46 per kg in September-October. Chilli exports to Bangladesh normally picks up after October.
According to preliminary estimates, red chilli crop in 2007 is estimated to go up 10-15% over last year's crop of 8.5 lakh tonnes due to a rise in acreage in red chilli cultivation in two of the main producing states — Andhra Pradesh and Madhya Pradesh. In 2007, about 1.80 lakh hectares have been brought under chilli cultivation in Andhra Pradesh against last year's coverage of 1.60 lakh hectares. Area under chilli cultivation in Nimad in Madhya Pradesh has gone up 50-70%. With this, chilli output in the largest chilli producing area of the state is projected to rise 15% to 30-32-lakh bags of 40 kg each or 1.2 lakh tonnes.
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