Chilli futures suffer losses on profit booking

Chilli continued its slide for the second straight session and prices fell by Rs 26 to Rs 6,712 per quintal in futures trade today on continued profit booking by speculators.

However, tight supplies and projected lower crop production capped losses.

At the National Commodity and Derivatives Exchange platform, chilli for March delivery remained under pressure and prices fell by Rs 26, or 0.39 per cent, to Rs 6,712 per quintal, with an open interest of 1,265 lots.

Likewise, the spice for delivery in February fell by Rs 16, or 0.23 per cent, to Rs 6,804 per quintal, with a business turnover of 2,790 lots. 

Market analysts said continued profit booking at prevailing higher levels by speculators, dragged down chilli futures prices, but lower projected crop and higher exports, restricted losses.

In the April-October period this year, 1,41,000 tonnes of chilli has been exported, as against 1,11,750 tonnes in the same period last year, they added.