Chilli trades up on firm domestic demand

Chilli prices edged higher on short covering. However higher arrivals in the physical market limited the upside.
Rains in December end had badly affected the quality of crop output. As per market sources, production in 2010-11 were expected near one million tons which is 16 percent lesser than last year production.
Attention of farmers to highly rewarding crop like turmeric and cotton and erratic weather condition during the sowing period had considerably reduced the area under cultivation.

(Source: http://www.commodityonline.com/futures-trading/tradingtips/Chilli-trades-up-on-firm-domestic-demand-12347.html)