After fire, early rains cast a cloud over chilli exports
While Sunday’s fire has gutted the world’s biggest wholesale chilli market in Guntur, industry sources said the real impact will come from heavy unseasonal rains in the last week of March and the first week of April.
By Raghu Krishnan, |
BANGALORE: While Sunday���s fire has gutted the world���s biggest wholesale chilli market in Guntur, industry sources said the real impact will come from heavy unseasonal rains in the last week of March and the first week of April. This could bring down exports for the current fiscal year by 5% to 10% in terms of volume and value, when compared with ���07-08.
The impact of fire is perceived as largely psychological, as evinced by a short-term 10% to 15% spurt in spot prices in the country���s main consumption markets of Delhi, Mumbai and Ahmedabad.
India accounts for 35% to 40% of the world chilli trade, followed by China with 30% to 35% roughly. India exported 1,45,000 tonne of chilli valued at Rs 7,85.30 crore for the first nine months of fiscal ���07- 08. Figures for the last quarter are not available.
India���s exports for the first 9 months of fiscal ���07-08 were higher by 53% in quantum and 57% in value when compared with the corresponding period of the previous fiscal ��� 95,100 tonne for Rs 499 crore.
The unseasonal rains are expected to impact mainly the quality of the chilli crop in Andhra Pradesh (Guntur), Tamil Nadu (Theni, Sankarkovil, Tuticorin) and Karnataka (Byadgi, Bellary). India���s annual crop is estimated at 12 lakh tonne, with Andhra Pradesh accounting for 55% roughly. Domestic consumption is estimated at 9 lakh tonne.
Any discontinuity in terms of supplies following the gutting of the 60-acre wholesale chilli market in Guntur is expected to be short-lived. Chilli Commission Agents Union president Rosaiah said temporary arrangements could be made in a week���s time.
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The Andhra Pradesh chief minister has indicated that a permanent market yard with modern amenities could be set up on a 250-acre site within five months.Download
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