Chilli Spot Slips By Rs 400

Mumbai: Red chilli on February 8 hit the lower circuit across all the sections in futures trade on the National Commodity & Derivatives Exchange on the back of inordinately high arrivals in mandis. The hot variety plunged by Rs 400 a quintal in the spot market. Moreover, the price decline also witnessed in the futures market was a reflection of the huge slump in spot prices. The country's total chilli production for this season was estimated at 2.2 crore bags (40-45 kg each). But traders now say the output may go up slightly. And this, according to them, may push down the market into a further bearish trend. Even at these lower price levels, buyers are keeping away from the market. Traders, however, are expecting good export demand this year. Guntur is currently seeing a daily arrival of around 20,000 bags, and this is expected to touch a peak of 1 lakh bags by the end of this month. Quality-wise, the crop hitting the markets currently is better than what had been supplied till last month.