Chilli futures hit upper circuit, surge 4% on strong demand

Chilli prices went up by 4.01 per cent to hit upper circuit at Rs 8,356 per quintal in futures trade today, powered by a strong demand at the physical market and estimated lower crop production.

All the three running contracts for February, March and April, had hit upper circuits by climbing 4 per cent.

At the National Commodity and Derivatives Exchange platform, chilli for delivery in February spurted by Rs 322, or 4.01 per cent to Rs 8,356 per quintal, with an open interest of 4,560 lots.

Similarly, the spice for delivery in March and April contract shot up by Rs 328, or 4.01 per cent each at Rs 8,512 per quintal, respectively, with a turnover of 3,160 and 935 lots.

Analysts attributed a significant rise of 4 per cent in the prices of chilli futures to strong spot demand amid lower arrivals and estimated lower crop production.

Good exports demand also supported the run-up in chilli futures prices, they said.

Meanwhile, during April-October 2010, a total quantity of 1,41,000 tonnes of chilli as against 1,11,750 tonnes, has been exported.