Growing Supply Meets Rising Prices

In Guntur Mandi, Andhra Pradesh (India), red chilli prices continue to increase, even as supply grows. Stockists and traders are buying large quantities as the monsoon season ends. This price rise happens despite a 17% drop in exports during the April-June 2024 quarter.

Steady Prices in the Local Market

In the local wholesale market, red chilli variety 334 has stayed stable at USD 2,16 to 2,28 per kg. While Teja red chilli prices range between USD 2,28 to 2,52 per kg. These prices follow a recent decrease of USD 6,00 per kg. However, sales have been slow, impacting overall market sentiment.

Jugaraj Bhandari, a trader from Guntur, reported that product arrivals have increased to 50,000 sacks, up from the previous 40,000-45,000 sacks. As a result, Teja red chilli prices have risen by USD 1,20 to 1,92 per kg, and red chilli variety 341 has increased by USD 1,20 to 1,44 per kg, now priced between USD 1,68 to 2,04 per kg.

Export Figures Decline

According to the Spices Board, India exported 1,14,102.69 tonnes of red chilli, generating USD 2,66 billion during the April-June 2024 period. This marks a 17% decrease in export volume and a 28% drop in revenue compared to last year.

With the monsoon season ending and the festive season approaching, traders expect red chilli demand to increase. However, the arrival of new crops from Madhya Pradesh in the coming month could affect prices.

Conclusion: Prices Likely to Remain Firm

Despite the increase in supply, rprices are expected to hold strong due to limited stock and concerns over weaker crops in Madhya Pradesh. Traders are keeping a close watch on how the market evolves in the coming weeks.

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