Chilli futures remain up on strong demand

Supported by a strong demand at spot markets and projected lower crop, chilli prices spurted by 1.70 per cent to Rs 6,472 per quintal in futures trade today.

At the National Commodity and Derivatives Exchange platform, chilli for delivery in February contract spurted by Rs 108, or 1.70 per cent to Rs 6,472 per quintal, with an open interest of 1,925 lots.

It ended the previous session with four per cent gain.

Similarly, the spice for delivery in March contract gained Rs 104, or 1.64 per cent at Rs 6,460 per quintal, with an open interest of 935 lots.

The delivery for December contract rose by Rs 18, or 0.32 per cent to Rs 5,576 per quintal, with an open interest of 1,410 lots. 

Analysts said persistent rise in the chilli futures prices was due to strong demand, amid lower arrivals and projected lower crop this season.

Besides, good export demand also supported the run-up in chilli futures prices, they said. 

Meanwhile, during April-October 2010, a total quantity of 1,41,000 tonnes of chilli as against 1,11,750 tonnes has been exported.