India chilly prices to climb on production downfall

GUNTUR (Commodity Online) : Chilly prices in India could be pushed up to record levels after May, owing to a drop in chilly production, said a recent study by agricultural market intelligence centre (AMIC) of Acharya NG Ranga Agricultural University (ANGRAU).
"This year's continuous rainfall in the first week of December have resulted in damage to the chilly crop because of which production would be lower by almost 30%," P Raghu Ram, principal investigator of AMIC told Financial Express.
Teja varieties of chilly have been roaming around Rs 6,500 to Rs 7,500 per quintal. As arrivals start coming in big volumes, prices possibly would come down by Rs 1,000 per quintal.
Better returns from turmeric and cotton would prompt farmers to switch from chilly, it is expected.
Cyclonic rains had flooded the chilly producing parts in coastal Andhra Pradesh in December thereby ravaging the crops.
However, harvesting is on in Guntur whereas in Madhya Pradesh and Karnataka, the process is in the final stage, even as production is expected to come down in China, Pakistan, Burma and Bangladesh owing to floods.
India’s chilly exports climbed by 26% in volume and by 22% in value YOY, data from Spices Board said.
Branded powder sales of chilly has also been on a growth trajectory with CAGR (Compound Annual Growth Rate) of chilly touching 11% while the spices mix category growing at a CAGR of 7%.
February contract chilly in NCDEX, at the time of filing this report was at Rs.8534 a quintal, while the spot market price of Guntur Loose, Red Chilli Teza was between Rs.6400-7500.

(Source: http://www.commodityonline.com/news/India-chilly-prices-to-climb-on-production-downfall-35765-3-1.html)