You are here: Home » Markets » Commodities » Food & Edible Oils
Business Standard

Increased acreage to boost chilli production in 2012

Sharleen D'Souza  |  Mumbai 

This year, chilli production is expected to be higher by 15 to 20 per cent on the back of increased acreage under the spice.

Last year, the total production was around 12 lakh tonnes, according to industry sources.

Andhra Rabi chilli area is reported 0.29 lakh hectare as on 23rd November compared to 0.24 lakh ha a year ago.

“Currently, the old stock position around Guntur region is 8 lakh bags. Farmers are planning to see off stocks, as prices will fall further once arrivals increase,” said an industry source.

Farmers resorted to growing the spice this year in the hope of getting better returns, as last year the price of the commodity doubled.

Arrivals of chilli started in Madhya Pradesh in the month of December, and has now begun in Guntur, in Andhra Pradesh, the largest producer of the spice in the country.

Currently, the arrivals in Guntur are around 25,000 to 30,000 bags (1 bag = 40 kgs) a day, but according to industry sources, it is expected to pick up in the coming days and may go up to 50,000 bags by February, industry sources said.

“In Madhya Pradesh this year production is estimated to be around 45 lakh bags (1 bag = 30 kgs) from last year's production of 40 lakh bags,” said Ashok Dattani, a Navi Mumbai based chilli trader said.

Chilli prices are expected to slide further owing to good production coupled with weak demand from overseas Last year, export demand for chilli was strong owing to good demadn from Pakistan and China.

India exported 110,500 tonnes of chilli during April to October last year compared to 149,500 during the same period in 2010, according to Spices Board of India.

Chilli prices on the spot market has moved down by 21 per cent since November from Rs 8688.40 per quintal on 1 November to Rs 6878.25 on 9 January.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 11 2012. 16:30 IST