Monday, August 4, 2008

Increasing Export Demand Likely To Push Up Chilli Prices - Aug 04 , 2008

Mumbai: The sharp decline in chilli arrivals in the Guntur spot markets and increasing export demand likely to push up chilli prices in the short term. Inventory in the cold storages has declined from 48 lakh bags last month to 40 lakh bags due to strong export demand from Sri Lanka, Malaysia and the US for good quality such as Badgi and Teja Aswhini.

The market saw a shortage of good quality chilli due to unseasonal rains in the growing region of Andhra Pradesh. Chilli exports in the first two months increased 21 per cent to 50,000 tonnes in the fiscal '09. Despite better realisation, the acreage under chilli cultivation may not go up drastically this crop season because of heavy losses incurred by farmers due to crop damage last year.

Insufficient rain in the last two months has pushed up chilli rates, but it started correcting with the revival of monsoon in Maharashtra and Andhra Pradesh in mid-July.

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