GUNTUR: Despite massive increase in supply, the chilli business at Guntur Mirchi yard remains at a brisk pace. The market has been receiving over 1.3 lakh to 1.5 lakh bags of chilli on a daily basis, however, the prices have remained stable.
According to market experts, the export market has driven chilli prices northwards. There has been a huge demand for chilli from China, Bangladesh, Indonesia and the UAE. Though exports to these countries have gone up steadily in the past two years, the demand has surged unprecedentedly in the current season owing to floods and other calamities. This has led to increase in demand for Guntur chilli, popularly known for its rich quality and pungency, in the international market.
Unlike in the past, majority of the traders didn’t anticipate the jump in prices. The surge in demand in the export market has led to Rs 1,000 per quintal increase in chilli prices in the past one week. Top varieties of chilli are fetching record prices between Rs 23,000 and Rs 26,000 per quintal.
The prices of Byadigi 5531/668 has increased from Rs 20,000 to Rs 24,000 per quintal. The price of Teja S17 is Rs 20,000-Rs 22,000 per quintal, 334 Sannam is being sold at Rs 19,200 to Rs 21,500 per quintal, Number 5 is being sold at a range between Rs 20,000 and Rs 22,000 per quintal, and Devanuru Deluxe fetching between Rs 21,000 and Rs 22,500 per quintal.
Experts say, the vendors are eager to do business as the exports have peaked up this season. Speaking to TNIE, Madhu Babu, a vendor at mirchi yard said, “Guntur mirchi, popular for its hot flavour, is predominantly grown in the erstwhile Guntur, Prakasam districts in Andhra Pradesh and Khammam district in Telangana. The increase in demand & supply has given a reason to rejoice. However, it has led to traffic snarls at the market yard, causing inconvenience to both farmers and vendors.”