Red chillies are not at all hot these days if the dwindling price of the commodity is of any indication.
In the last two months, prices of chillies have drastically come down, especially in Guntur markets in Andhra Prades. Guntur is the largest marketplace for red chillies in Asia.
Traders said the prices of chillies have this week fallen to Rs 3,000-4,000 per quintal from Rs 4,500-5,200 per quintal in March. "Only good export orders can now take the prices of chillies up," said Guntur based chilli trader Hari Om Maheshwari.
Good export orders from Indonesia ,Sri Lanka, Pakistan and Malaysia had supported the prices early this year.
Maheshwari said the prices may also firm up when the Guntur markets reopen in June. Markets in Guntur have been since May 12 for summer and will reopen
Traders said the cold storage facilities across Andhra Pradesh for red chillies are all packed, and farmers are also holding on to large stocks expecting a good price rise in the commodity.
Around 70-80 lakh bags of chillies have already arrived at the Andhra Pradesh mandis and 10 lakh bags are now expected to come to the markets.
Early monsoon signals have also added to the pressure on chilli prices. Early monsoon is expected to lead to early sowing and early arrivals of the chillies leading to a further fall in prices.
The futures market have also taken a cue from the chilli market and is showing downward movements.
The NCDEX June contract on red chillies on Wednesday closed down 3 percent at Rs 4,905 per quintal while the far month contracts closed down 2.75 percent.
