Andhra rains push chilli up by Rs 400/qntl

Chilli futures have surged by over Rs 400 a quintal since the beginning of the week as rains in Andhra Pradesh, the largest producer of chilli, damaged the crop.

According to analysts at Angel Commodities, rains have moistened the harvested crop, thus affecting the quality of the commodity. Besides, demand from the overseas market, especially Bangladesh, will further add to the bullish sentiments.

In Guntur, arrivals on on Wednesday were around 120,000 bags (each of 40 kg). In the physical market, the prices ruled between Rs 3,300 and Rs 3,900 a quintal.

Reports suggest that farmers are reluctant to sell their produce below these rates. This could further boost prices.

According to commodity experts, the market could see a resistance at the Rs 4,760 a quintal level, while Rs 4,380 will offer support.

On the National Commodity and Derivatives Exchange, the chilli near futures closed on Wednesday at Rs 4,585 a quintal against the previous close of Rs 4,479 a quintal. Compared With the last week's closing, it is a jump of 10.27 per cent.