Chilli arrivals will be delayed by a month

Chilli arrivals will be late by a month this season as sowing was delayed due to drought and floods in large parts of the country, Brokerage firm Karvy Comtrade said.

"The arrivals usually begin by November-end to December, but this year we expect it to be delayed till January 2010," brokerage firm Karvy Comtrade's analyst Kumari Amrita said.

 The arrivals will set back as pickings will begin late followed by late sowing, she said, adding the recent floods further aggravated the situation.

The sowing was delayed this year as monsoon remained deficient during most part of July and August in Andhra Pradesh and Karnataka.

SMC Global's Ajeet Kumar said the production of the spice will also decline as the acreage in Andhra Pradesh--main chilli growing state--has fallen by 24 per cent to 1.21 lakh hectares from 1.62 lakh hectares last year. Andhra Pradesh contributes 50 per cent to the total chilli output, while Karnataka contributes 10 per cent.

Chilli prices have already crossed the Rs 6,000 per- quintal level and the delay will push prices further, she said.

However, lack of export demand is keeping prices from spiralling up for now, Kumari said. The exports have declined due to absence of demand from Pakistan, which is mainly importing from China that had a bumper crop this year.

But, Kumari said, chilli prices will continue to remain firm to trade in Rs 6,000-5,600 a quintal level as the export demand, particularly from Bangladesh, is picking up.