Reports suggest that around 200,000 bags of chilli (each of 35 kg) were destroyed resulting in a loss of above Rs 40 crore. The overall losses in the market are estimated at around Rs 200 crore. The wholesale market, which had over 500 shops, was gutted.
According to M Sivaramaiah, the yard special grade secretary, the mishap was caused by a short circuit. The fire department said fire will be brought under control only tomorrow.
The current stocks in Guntur are around 4 million bags. Ashok Dattani, a Mumbai-based chilli trader, said, the market was to be closed from May 9 for a month. With this mishap, the closing date has been changed to May 5.
Demand from Pakistan and Bangladesh for quality chilli is expected to push up the prices as March rains had its impact on the standing crop in Andhra. On the National Commodity and Derivatives Exchange, the June contract closed on Saturday at Rs 4,918 a quintal against the previous close of Rs 4,728 a quintal.
NewsWire 18 adds: The huge fire in Guntur may take prices up by 25-30 per cent, traders said. The current average spot prices of Guntur chilli is Rs 30-40 per kg and the loss of such a large number of chilli bags may raise it to Rs 45-50 per kg, said trader Vinay Boobna at Spice Trading Co.
The exact cause of fire is not known but some traders said a short circuit
