Increase in Chilli Prices Due to Short Supply & Rising Demand.Home

The annual chilli production in the country is about 13-14 lakh tonne. Rising prices have led to hoarding, which in turn affects supply and boost prices further. Increase in Chilli Prices Due to Short Supply and Rising Demand. The prices of the largest exported spice from India are hovering around Rs 95-Rs 100 a kg, 20 per cent more than the prices a year ago, and may race to a new high depending on the demand, trade insiders say.

Due erratic rains last year Chilli crop was down by 15 per cent-20 percent. This along with high export demand in the end of 2014-15 seems to have dried up the stock, particularly in Andhra Pradesh.
Venkat Rosaiah, president of Guntur Chilli Commission Agents Association said, "About 75 per cent of the available stock is with the traders and only the rest is with the farmers". The prices are expected to go above Rs 100 in the coming weeks. Chilli exports in 2014-15 touched a record 3,47,000 tonne valued at Rs 3,517.10 crore. This time it remains to be seen how export will pan out.

Source: http://economictimes.indiatimes.com/