Despite the sluggish demand for chilli in the domestic and export market, there was a good arrival of the spice after the lockdown. With most of the cold store stocks sold out for the farmers, the market is looking up for chilli. Furthermore, with festival season and wedding season coming up, there will be a significant increase in domestic demand.
All these factors indicate that the price level of chilli will be stable for the upcoming weeks before it increases.
As the monsoon season is already underway and sowing of chilli starting soon, it is expected to have the potential for becoming a bumper crop for 2021-2022 with an increased acreage by 25% to 30%. As most regions growing chilli has received moderate rain apart from Karnataka, chilli production is likely to be high for the upcoming year.
In the last month, between May 12 and June 10, Guntur Market experienced mostly positive pricing for the chilli.
Factors that might affect the prices in the upcoming weeks and months are the demand of the export market, the progress of the monsoon, and the Covid 19 spread caused due to the Delta variant.
Chilli, as of now being traded at around $2,10/ kg FOB.
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