Chilli falls 1% on sluggish demand

Fall driven by sluggish demand in the spot market against adequate stocks position

Chilli prices fell by Rs 64 to Rs 5,236 per quintal in futures market today as speculators reduced their holdings, driven by sluggish demand in the spot market against adequate stocks position.

However, lower sowing due to deficient rains in key growing areas raised fears of less production this season and limited the losses to some extent.

At the National Commodity and Derivatives Exchange, the August contract for chilli fell by Rs 64, or 1.21%, to Rs 5,236 per quintal, with an open interest of 8,875 lots.

The September contract lost Rs 56, or 1.03%, to Rs 5,374 per quintal in 3,380 lots.

 

Market analysts attributed the fall in chilli prices at futures market as speculators reduced their positions on the back of sluggish demand at prevailing higher levels.