Red chilli is expected to turn costlier by March due to an expected 30% plunge in output in the main producing states of Andhra Pradesh and Telangana, combined with failure of the crop in Madhya Pradesh.
Kochi: Red chilli is expected to turn costlier by March due to an expected 30% plunge in output in the main producing states of Andhra Pradesh and Telangana, combined with failure of the crop in Madhya Pradesh.
After as much as 50% fall following a bumper crop, average prices moved up gradually from Rs 35 per kg during the year as the stock thinned. Average prices are around Rs 75 per kg now and the premium quality fetches Rs 100 per kg. "The harvest has just begun and will continue till March. Only then we will know whether the crop will be sufficient to meet domestic consumption and export. But since a shortfall is predicted, prices would definitely rise,'' said Ravipati Peraiah, MD, Vijayakrishna Spice Farms.
India usually produces 15-16 lakh tonnes of red chillies. Last year saw a bumper crop of over 18 lakh tonnes, which, together with the carryover stock, took the total supply to more than 19 lakh tonnes.
After meeting the domestic consumption of 13 lakh tonnes and export, the trade expects an inventory of more than three lakh tonnes as opening stock. "Since the production is likely to be around 12 lakh tonnes together with the carryover stock it could be a hand-tomouth existence for the trade,'' Peraiah said.
Apart from the disappointment on the price front that led many farmers to forego chilli in favour of cotton, unseasonal rains too affected the crop by causing pest problems.
Meanwhile, chilli continues to be the largest exported spice from the country, with a 42% rise from a year earlier in volumes at 2,35,000 tonnes for the six months ended September 30, 2017. The value, however, saw an 8% dip at Rs. 2,126 crore for the period. The earnings are expected to be lower than in 2016-17, when chilli earned Rs. 5,070 crore on a quantity of 4,00,250 tonnes.
After as much as 50% fall following a bumper crop, average prices moved up gradually from Rs 35 per kg during the year as the stock thinned. Average prices are around Rs 75 per kg now and the premium quality fetches Rs 100 per kg. "The harvest has just begun and will continue till March. Only then we will know whether the crop will be sufficient to meet domestic consumption and export. But since a shortfall is predicted, prices would definitely rise,'' said Ravipati Peraiah, MD, Vijayakrishna Spice Farms.
India usually produces 15-16 lakh tonnes of red chillies. Last year saw a bumper crop of over 18 lakh tonnes, which, together with the carryover stock, took the total supply to more than 19 lakh tonnes.
After meeting the domestic consumption of 13 lakh tonnes and export, the trade expects an inventory of more than three lakh tonnes as opening stock. "Since the production is likely to be around 12 lakh tonnes together with the carryover stock it could be a hand-tomouth existence for the trade,'' Peraiah said.
Apart from the disappointment on the price front that led many farmers to forego chilli in favour of cotton, unseasonal rains too affected the crop by causing pest problems.
Meanwhile, chilli continues to be the largest exported spice from the country, with a 42% rise from a year earlier in volumes at 2,35,000 tonnes for the six months ended September 30, 2017. The value, however, saw an 8% dip at Rs. 2,126 crore for the period. The earnings are expected to be lower than in 2016-17, when chilli earned Rs. 5,070 crore on a quantity of 4,00,250 tonnes.