RED CHILLI PRICES WILL HOVER AROUND RS. 5500 TO RS. 6500/Q AT HARVEST

India is the leading producer of chillies contributing close to 40 per cent of world’s production. It is the only country rich in many varieties with different quality factors. While the consumption of chilli is the highest in India, the maximum export is also from the country. The major producers are Andhra Pradesh, Karnataka, MP, Orissa, Maharashtra and Tamil Nadu. Andhra Pradesh alone commands around 53.27% of the chilli production in India. The major chilly growing districts of Andhra Pradesh are Guntur, Warangal, Khammam, Krishna and Prakasham. Chilli has well established spot markets. Guntur, Warangal, Khammam in Andhra Pradesh; Raichur, Bellary in Karnataka and Erode in Tamil Nadu are the major spot markets at the production centers.

Andhra Pradesh is the leading state contributing to about 58 per cent of country’s total production of chilles. Karnataka is the second largest producer. Guntur chilli has a pride of place in international market because of its attractive colour, pungency and keeping quality. Guntur is the lead market influencing the domestic and international prices. According to trade sources, discouraged by the previous year’s feeble prices, the farmers in Andhra Pradesh have shifted to other crops bringing down the area by 20 per cent during 2012-13 against the previous year and further the crop was affected by weather aberrations signalling a likely fall in output too. In Andhra Pradesh, chilli crop nursery is raised in 2^nd fortnight of July, transplanting done in 2^nd fortnight of August and harvesting from January to March. Peak arrivals of chilli take place in the months of March and April, medium transactions during May to November and lean arrivals in the months of December and January.

According to the official records the area under chilli stood at 1.34 lakh ha in 2012-13 against 2.01 lakh ha in 2011-12.          Under these circumstances the Agricultural Market Intelligence Centre (AMIC), at  S.V.Agricutural  College, Tirupati analysed the 18 years monthly data of modal prices of Guntur market to predict the chilli prices during the months commencing from January 2014 to May 2014 assuming normal area in the state.The results of the analysis supported by market survey indicated that price at the time of harvest (Jan 2014) would be arround Rs. 5000/q for varieties like LC334, US341, Indole5, BJ335, BS273, Guntur sangam and for Teja/Tejaswani it would be around Rs. 6000/ to Rs 6500/qtl.