For­eign De­mand Spices Up Red Chilli Prices

The Economic Times - - Finance & Commodities - Kr­ish­naku­mar.PK @times­

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.

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