Chilli Prices Fall On Rising Output

Mumbai: Envisaging chilli at Rs 30-40 a kg may have been a far cry some time ago, especially when prices were going up to Rs 7,000 a quintal in the domestic market. The reason for the falling prices is the estimated chilli production in 2006-07 at around 70 per cent more than what it was last year. The crop is expected to be normal and better than that of the last year, when the country witnessed a fall of almost 50 per cent at 1.3 crore bags (each of 45 kg). As the chilli market this year saw new highs, farmers returning to chilli cultivation could be a probable reason behind the surge in production estimates. Between January and November in 2006, the country exported 70,000 tonne as against 1,25,000 tonne during the same period in 2005. In 2007, the exports are expected to be around 1,25,000 tonne.