Delayed arrival to cushion fall in chilli prices

The prices of sannam chillies, now ruling at Rs 40-50 a kg in Chennai and Virudhunagar, could fall to Rs 30-40 in February-March instead of the usual Rs 20-25 level due to disruption in arrivals.

The supply gap is due to unseasonal rainfall and a delay in sowing of the crop.

The Domestic and Export Market Intelligence Cell (DEMIC) of the Tamil Nadu Agricultural University, which analysed price data across Tamil Nadu's chilli markets, noted that prices normally start declining from January due to fresh arrivals and during the peak arrival season in February, they declined sharply to Rs 20-25 levels.

The DEMIC team studied price data in the chilli markets of Ramanad, Paramakudi, Virudhunagar, Tuticorin and Chennai.

According to it, the export patterns will play a vital role in price movements. At present, demand from Sri Lanka, Bangladesh, Singapore and Malaysia is looking good.

India accounts for 25 per cent of the global chilli production and is the largest producer with 12-14 lakh tonnes annually, followed by China with 400,000 tonne, Mexico with 300,000 tonne and Pakistan with 300,000 tonne. Around 90 per cent of India's production is consumed domestically.