Chilli spot prices steady to low

Chilli spot prices in the key market of Guntur, Andhra Pradesh, are seen steady to low in the next one week amid high stock level and lack of growth in demand from buyers in Bangladesh and Sri Lanka, traders and analysts said today.

On the National Commodity and Derivatives Exchange, prices are likely to move sideways, as the low stock level in exchange warehouses will lift prices while selling at higher levels will cap the upside.

High stock level and rise in arrivals have subdued chilli prices amid steady domestic and overseas demand.

"Domestic demand is not exceptional while export demand from Bangladesh and Sri Lanka have not been as per expectations, which has prevented a major rally in chilli prices," said Mungilal Mundra, proprietor of Guntur-based Shyam Traders.

Also, fears of crop damage in China have eased because there have been no major export enquiries from that country, traders said.

In Guntur, spot prices were at Rs 4,000-4,500 per 100 kg, compared with Monday's close of Rs 4,100-4,600. Arrivals in Guntur, the main trading centre, were around 50,000 bags (1 bag=45-50 kg) today, up from last week's average of 40,000 bags, as more traders offloaded their stock in the market, said Hari Om Maheshwari, a Guntur-based trader.