Oversupply brings red chilli prices crashing

Source: The Hitavada      Date: 13 Jun 2017 10:15:29


 

Business Bureau,

THE red chilli prices have fallen by 50 per cent due to oversupply compared to prices of previous year in the wholesale market.
“Due to good rains, there was a bumper production of the crop in major chilly-producing regions in the country. This resulted in oversupply of chillies leading to prices crashing in the market,” said Sanjay Wadhwani, Secretary of the Nagpur Chillies Merchants Welfare Association, Kalamna Market while talking to The Hitavada.


Due to higher prices of chillies in the previous year, the farmers increased the acreage of the crop which led to a record production and crash in prices.
Wadhwani said that with low prices, the farmers had resorted to keeping chillies in cold storage in anticipation that prices would firm up during the next six months and they would get better remuneration. Currently, the chillies being supplied to the wholesale market were from the cold storage.


He said that prices of chilli variety 334 from Guntur, Andhra Pradesh was being quoted at Rs 50 to Rs 60 per kg compared to the year-ago prices during the same period at Rs 100 to Rs 110 per kg. Chilli Khammam Teja from Guntur, Andhra Pradesh was being quoted at Rs 75 per kg to Rs 85 per kg compared to last year’s Rs 125 to Rs 135 per kg.


The local Rashi Gold chilli from Kuhi Mandar and Bhiwapur was being quoted at Rs 45 to Rs 55 per kg compared to previous year’s Rs 100 to Rs 110 per kg. The Devnur Delux chilli from Gadchiroli was being quoted at Rs 50 to Rs 65 per kg compared to a year ago at Rs 100 to Rs 110 per kg.


Similarly, the small Teja chilli from Buldhana was being quoted at Rs 70 per kg compared to previous year’s Rs 100 per kg.
He said that during the peak season from March to May, about 50,000 to 60,000 bags (a bag consists of 40 kg) of chillies per week were brought to the Kalamna Wholesale Marketyard. Currently, about 15,000 bags were being brought to the market.