Chilli prices hit upper circuit on strong demand

Restricted supplies from producing belts raises September contract by 4%

Buoyed by a pick up in demand in the spot markets, chilli rose for the third consecutive day to hit the upper circuit at Rs 6,374 per quintal in futures trade today.

Traders said restricted supplies from producing belts and fresh overseas inquiries fuelled the rise in chilli futures.

At the National Commodity and Derivatives Exchange, chilli for delivery in September rose by Rs 246, or 4.01%, to hit upper circuit at Rs 6,374 per quintal, with an open interest of 3,695 lots.

August chilli climbed Rs 214, or 3.62%, to Rs 6,128 per quintal, with an open interest of 7,370 lots.

 

Market analysts said besides the strong demand in the spot market supported by the festive season, less supplies from producing belts led to an upsurge in chilli prices.