Increasing arrivals boost prices

Even as farmers and traders debate on whether chilli prices would fall or not, increasing arrivals of the crop stored in about 70 cold storages (55 lakh bags of 40kg each) on the outskirts of Guntur have given a new boost to auction prices.

On the high side, special chilli prices have remained steady around Rs 6,000 and on the lowside at Rs 5,000 a quintal.

The farmers seem to have mastered the art of marketing the crop at the market yard here. They have been unloading the commodity from the cold storages since the middle of last month.

If the prices do not suit them, they would take back the crop. They bring the last pickings of the chilli crop to the market and sell it at whatever price to fund their immediate financial needs.

Cold storage chillies special varieties fetched a price of Rs 5,700-6,000 a quintal on Tuesday and Rs 5,000-6,100 on Monday. Farmers received Rs 4,100-4,500 a quintal on Tuesday and Rs 3,800-4,900 on Monday for cold storage common varieties.

However, chilli fresh crop common varieties didn't seem to have many takers as farmers were disposing of the last pickings. They paid Rs 2,800-4,100 a quintal for this crop on Tuesday and Rs 2,800-4,000 on Monday.

Cold storage white chillies (talu) was sold at Rs 2,300-2,700 and non-cold storage white chillies Rs 1,000-2,000.

Farmers bemoaned that export orders have not picked up as an increase would have led to a rise in yard prices. Chillies in small quantities are being exported to Malaysia, Singapore, Pakistan and Bangladesh. With the absence of any real activity on the export front, the price would stagnate at present levels, traders added

Last week, cold storage special varieties fetched Rs 4,400-6,100 on Monday (June 25), Rs 5,100-6,100 on Tuesday, Rs 4,900-6,200 on Wednesday, Rs 4,900-6,100 on Thursday, and Rs 5,000-6,300 on Friday.

Prices paid to cold storage chillies common varieties were recorded at Rs 3,200-5,000( Monday), Rs 3,800-5,100 (Tuesday), Rs 3,800-5,000 (Wednesday), Rs 3,500-5,000 (Thursday) and Rs 3,500-4,900 (Friday).

Chilli prices have in fact consolidated in the first quarter of FY08. Prices rose to a high of Rs 7,400 a quintal in April, then fell to Rs 5,600 in May and again went up to Rs 6,000 in June. They touched Rs 6,000 a quintal consistently during the last week and continue this week also.

Meanwhile, officials from the Agriculture Department said that this year farmers might add 10,000 hectares to last year's hectarage of 57,672 in Guntur district.