Malaysia, Lanka & Bangladesh Drive Chilli Exports In '08

NEW DELHI: Chilli exports from India are likely to surpass government target to touch 200,000 tonnes in 2007-08 on strong demand in countries such as Bangladesh, Malaysia, Sri Lanka and the US, industry body Assocham said.

“The country has already exported over 120,000 tonne of chilli in the first seven months of the current fiscal. Demand for Indian chilli is growing by over 20-25% in markets of Bangladesh, Malaysia, Sri Lanka and the US due to its quality, price competitiveness as well as its medicinal value,” Assocham president Venugopal Dhoot said in a statement.

The government has fixed a target of exporting 135,000 tonnes of the spice this year. India exported about 148,500 tonnes of chilli valued at Rs 807.75 crore in the past year. Malaysia is the largest importer of Indian chillies followed by Bangladesh, Sri Lanka and the US. Chilli exports account for about 48% in volume terms and 28% in value of the total spices export from India.

India’s annual chilli production is around 14 lakh tonnes and the country is the world’s largest producer of the spice. The main hubs of chilli production are Andhra Pradesh, Himachal, Jammu and Kashmir, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttrakhand and Uttar Pradesh. Assocham said the government should lower subsidies and provide fiscal assistance to motivate its chilli growers.

China imported over 900 tonnes of chilli from India in 2006-07. Malaysia imported 43,625 tonnes followed by Bangladesh 28,425 tonnes. Sri Lanka imported 21,822 tonnes, while the US bought 13,058 tonnes. The export varieties include chilli powder, dried chilli, pickled chillies and chilli oleoresins.

Meanwhile, chana futures fell for the second straight day on lack of demand compounded by pulses import by government agencies on Thursday, analysts said. “The continuous imports and selling in domestic markets influence the bearish trend ...” said Shardul Sharma, an analyst with Sharekhan Commodities.

By November 13, India had received about 0.7 million tonnes of pulses of the 1.2 million tonnes it had contracted, according to government data. More shipments are expected to arrive here by January, said analysts. Higher imports and supply depresses spot prices. In the spot market at Bikaner, Rajasthan, the price fell Rs 17 to Rs 2,173 per 100 kg, while in Delhi it fell Rs 11 to Rs 2,256.