Chilli prices may fall 10% by December-January

Kochi: Chilli, India’s largest exported spice, may get about 10% cheaper by December-January owing to subdued exports, higher output in Madhya Pradesh and increase in sowing area in major growing states, said traders.

The average chilli price may fall to about Rs 90 a kg by December-January from close to Rs 100 a kg at present, they said.

“The fall in prices may spur export demand, which is sluggish now,” said AP Murugan, director of Paprika Oleos (India), an exporting firm.

Chilli exports had touched a new high of 4,43,900 tonnes last year. “The quantity of exports could be lesser this year as major buyers have not purchased in large quantities,” said Ashish Maheshwari, export manager at Sidhhartha Corporation.

Besides major buyers such as Vietnam and Thailand, China increased imports of red chilli from India more than fourfold to over 9,000 tonnes from about 2,000 tonnes in the past few years, according to the data by Spices Board India.

The price crash following a bumper output in 2016-17 led to the increase in exports. In the ongoing season, the first chilli harvest in the country began this month in Madhya Pradesh.