Chilli output estimate tempered

The country's chilli output estimate for 2007-08 has been revised to 25-26 million bags (each of 40 kg), 10 per cent less than the earlier estimate of 28 million bags.

The downward revision is due to fall in yield and rains in the southern part. However, the crop size will still be more than that of last year, ruling out any potential surge in prices. Last year, the output was 23 million bags.

Market sources said that lower yield in Madhya Pradesh and Maharashtra, third and fourth largest growing states in the country respectively, may lead to lower output. Besides, instant crop damage caused by rains in Karnataka may further lead to the

fall. "Despite the downward revision, the chilli market will remain bearish," said a Mumbai-based trader. Normal domestic consumption per annum is around 15-17.5 million bags.

Arrivals from Madhya Pradesh, Maharashtra and Karnataka have already begun. Chilli from Andhra Pradesh, the biggest grower, is expected to hit the market in January around the festival of Pongal.

Sources said that crop from the state will be good and can add around 15 million bags alone.