Hyderabad: Saturday’s fire at the chillies market yard in Guntur is likely to trigger a temporary increase of 10-15 per cent in the prices of chilli in the open market in the next few days.
The fire mishap in Asia’s biggest chilli market yard had over two lakh bags of chillis gutted. The total loss, including that of the property, has been estimated at Rs 85 crore.
Traders, however, discounted the fears of price escalation in the retail market. “This is just a fraction keeping in mind the total volume of about one crore bags the market yard handles every year. This will not have any major impact on the retail prices,” said K Roshaiah, President of Chilli Traders Association, Guntur.
The market, however, responded immediately. As the news of the massive fire broke out on Saturday, the prices went up by at least Rs 10 a kg. Chilli prices are ruling at Rs 80 a kg in the organised retail shops, while neighbourhood shops are selling it at Rs 60-70.
Estimates put the total arrivals at the Guntur yard for the year at 90 lakh bags (each bag carrying 40-50 kg.) “Of these, about 45 lakh bags have already reached the cold storage units. Farmers still are left with 15-20 lakh bags,” he said.
Short-term impact
Traders, however, admitted to the fact that deliveries to different markets in the country would be hit for a few days, creating a short-term scarcity. “This could result in increase in prices in the short term. In the long run, there won’t be any impact,” he said.
Y. Shivaji, former MP and representative of farmers, said some vested interests were creating panic-like situation, saying that supplies were being hit due to the fire.
“The total production could be around 15 lakh tonnes this year against 12.5 lakh tonnes last year. Unprecedented rains this year could drag down the production to 10-10.5 lakh tonnes. Of this, the loss could be around 6,000 tonnes. This would not have much impact on the market,” he said.
There won’t be any impact on exports too to the neighbouring countries. “We export one-tenth of the arrivals to countries like Sri Lanka and Bangladesh,” he added.
The fire mishap in Asia’s biggest chilli market yard had over two lakh bags of chillis gutted. The total loss, including that of the property, has been estimated at Rs 85 crore.
Traders, however, discounted the fears of price escalation in the retail market. “This is just a fraction keeping in mind the total volume of about one crore bags the market yard handles every year. This will not have any major impact on the retail prices,” said K Roshaiah, President of Chilli Traders Association, Guntur.
The market, however, responded immediately. As the news of the massive fire broke out on Saturday, the prices went up by at least Rs 10 a kg. Chilli prices are ruling at Rs 80 a kg in the organised retail shops, while neighbourhood shops are selling it at Rs 60-70.
Estimates put the total arrivals at the Guntur yard for the year at 90 lakh bags (each bag carrying 40-50 kg.) “Of these, about 45 lakh bags have already reached the cold storage units. Farmers still are left with 15-20 lakh bags,” he said.
Short-term impact
Traders, however, admitted to the fact that deliveries to different markets in the country would be hit for a few days, creating a short-term scarcity. “This could result in increase in prices in the short term. In the long run, there won’t be any impact,” he said.
Y. Shivaji, former MP and representative of farmers, said some vested interests were creating panic-like situation, saying that supplies were being hit due to the fire.
“The total production could be around 15 lakh tonnes this year against 12.5 lakh tonnes last year. Unprecedented rains this year could drag down the production to 10-10.5 lakh tonnes. Of this, the loss could be around 6,000 tonnes. This would not have much impact on the market,” he said.
There won’t be any impact on exports too to the neighbouring countries. “We export one-tenth of the arrivals to countries like Sri Lanka and Bangladesh,” he added.
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