Chilli production this year is expected to be 15% lower this year compared to last year on the back of lower acreage this year.
Production of the spice this yea is estimated to be around 11 lakh tonnes compared to 12.5 lakh tonnes last year.
This year the area under chilli, in major producing area of Andhra Pradesh is around 87,428 hectare compared to 106858 ha last year.
The average sowing area that comes under chilli in Andhra Pradesh is around 104528 ha.
Sowing is impacted as export inquiries for the spice have been lower this year, also the price of chilli is lower this year compared to last year.
In the last one year chilli prices have been down by 40.7% to Rs 4,880 per quintal.
“Chilli is expected to trade range bound in the next few months due to lack of demand as well as lower production,” said Faiyaz Hudani, senior research analyst with Kotak Commodity Services.
