Ahmedabad, June 28 (CommoditiesControl): Chilli prices in major markets have remained mostly stable to weak, with notable variations across different regions. In Guntur and Khammam, prices remained steady, while Warangal saw a decline despite a reduction in arrivals. Buyers have remained inactive as recent adequate rainfall in chilli-growing regions suggests that acreage may not significantly decrease.
Market observations indicate low demand, with export activities yet to pick up. According to industry sources, seed sales have exceeded expectations, which might lead to a 10% reduction in acreage despite significant price drops.
Recent market data shows that arrivals of A/C bags numbered 65,000, with the majority sourced from cold storage facilities. Specifically, Guntur recorded 55,000 bags, a decrease of 15,000 from the previous session, and Warangal saw 5,000 bags, down by 3,000 from the previous session. Non-A/C bag arrivals were anticipated to range between 14,000 and 17,000 bags per market.
In parallel, the Ministry of Commerce has released export data for April, revealing a 23.5% decline in exports, totaling 36,583 metric tons (MT). The ongoing pressure on prices is largely attributed to low export demand. Notably, exports to key markets such as China, Bangladesh, and Sri Lanka have decreased by 15%, 31%, and 68%, respectively.
Market analysts predict that chilli prices will remain rangebound with a short-term downward bias due to the excess supply. Additionally, cold storage facilities operating at full capacity indicate an adequate supply, and with export demand expected to remain low, aggressive price increases are unlikely in the near future.
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