Prices of chilli are seen bullish for the next two-threemonths on the back of delayed and deficient monsoon in Andhra Pradesh, the country’s largest producer, said traders and analysts.
“Chilli prices on National Commodity and Derivatives Exchange (NCDEX) are likely to touch Rs 7,000-7,500 a quintal in next two-three months due to expectation of fall in output this year,” said Chowda Reddy, senior research analyst at Karvy Comtrade.
However, slight downward correction is also likely if the state receives rain in the next few days, he added. The commodity is seen finding crucial support at Rs 5,500 a quintal over the next one month.
“As of now, only 25 per cent of sowing has been completed in the state. Good spells of continuous rain are required in the next one-two weeks to continue planting till the month-end, said Jugraj Bhandari, a Guntur-based trader.
Andhra Pradesh accounts for 50-60 per cent of the country’s total chilli production, followed by Madhya Pradesh.
According to trade estimates, chilli acreage in Andhra Pradesh so far stands at 14,000 hactares (ha) as against 33,000 ha last year, because of which output is expected to decline, Reddy said.
Chilli sowing begins in July, but this year it was delayed by almost 15 days due to the faltering rain.
Total chilli acreage in the country stood at 650,000 ha in 2008-09 (July-June), Reddy said.
“Guntur, Krishna district, and Nalgonda remain the most affected regions in the state, while chilli sowing in Warangal and Khammam districts has been progressing well,” Bhandari said.
The hot and dry climate is hindering sowing, said Guntur trader Mungilal Mundra.
