Foreign Demand Spices Up Red Chilli Prices
Kochi: Prices of red chillies have recovered on overseas demand after falling by over 50% this year due to production glut.
“In the past 10 days, prices have increased by .₹ 8 per kg,” said AP Murugan, director of Paprika Oleos (India), an exporter. “China and Indonesia have been buying Indian chillies which are being supplied from cold storages. It is off-season and China is buying high-heat varieties from India. China’s next crop is due in October,” Murugan said.
The growth in export of red chillies is in part because of rising demand from China, where domestic production has failed to keep pace with consumption, especially that of the high-heat varieties. The average price of chilli had dropped to .₹ 35 per kg. It is now .₹ 50- .₹ 80 per kg. Lower prices have turned to be an advantage as India has become more competitive in the world market. “As a result, the quantity could see further rise this year,” Murugan said. With sowing expected to begin this month, what is worrying chilli growers is insufficient rainfall. “Though there have been some rains, there isn’t enough water in Krishna river and Nagarjuna Sagar dam for irrigation, which could affect chilli cultivation,” said Ravipati Peraiah, managing director of Vijayakrishna Spice Farms.