GUNTUR – This week, chilli in the Guntur mandi, Andhra Pradesh, was traded for quite a lower rate and the availability of the product is also lower than the average. According to market analysts from Guntur, the chilli acreage is likely to rise by 10 to 20 per cent compared to last year.
The demand for chilli seeds in the major growing states like Andhra Pradesh, Karnataka, and Telangana has steadily risen. Farmers are interested in increasing this Kharif crop area since there was a good profit from last year. But the market is already witnessing a shortage of good quality seeds. This is resulting in a rise in the seed price, thus costlier input.
Despite this, farmers are expanding the chilli cultivation area this year. As a result, it is anticipated that there will be more chilli than other crops. Some farmers are now even shifting to chilli farming from other crops.
Guntur based chilli traders said a farmer could earn between USD 2.680 – USD 5.360 per acre of chilli cultivation when it produces between 20 and 45 quintals per acre. Given last year’s selling price, which was USD 1,34 per kg, cultivating chilli looks more profitable.
The chilli market last week, however, continued to show a bearish trend with lower and average quality chillis available in the market. In Guntur itself, DD chilli was sold for USD 0,04 /kg lower than the previous week, while the other qualities were stable, with S4 stemless remaining at USD 2,075 /kg. Also, the mandis had only two varieties of chillis which were of lower quality, too.
It was also noted that there was not much demand from the local buyers with no export requirement.