Chilli to be range-bound

COMMODITY SPIKES

The Guntur mandi had caught fire earlier this month, prompting the spot market to shut down almost a week before the scheduled close. The chilli June futures rallied by more than Rs 200 a quintal on the National Commodity and Derivatives Exchange (NCDEX) last week.

Commodity analysts expect continuous shortage of export quality chilli in the domestic market. Moreover, the failure of China's crop (the main competitor in the global market) and the resultant export demand will not allow the domestic chilli prices to cool off.

 

Cold storages of Guntur stock 4.5 million bags (35 kg each). The country beat expectations, exporting more than 2 lakh tonnes of chilli this year, according to the Spice Board of India.