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Feb 4, 2008

Chillies are expected to become hot

Prices of 'Sannam' chillies are expected to become hot in the coming months on drop in production in Tamil Nadu, a survey by the Tamil Nadu Agricultural University (TNAU) said on wednesday.Prices would hover around Rs 30-40 per kg during February and March, against the normal Rs 20-25 a kg, the survey carried out by the domestic and export market intelligence cell of TNAU said.The export pattern would play a vital role in price movement as the demand for chillies from Sri Lanka, Bangladesh, Singapore and Malaysia has gone up, the TNAU said.Chilly prices usually start falling from January due to fresh arrivals and during the peak arrival period in February, prices drop to Rs 20-25 per kg.

However this year, the TNAU said, chilli prices are likely to move up following 10 per cent decline in production due to unseasonal rainfall in Tamil Nadu.Survey conducted in Ramanathapuram, Paramakudi, Chennai, Virudhunagar and Thoothukudi confirmed that stocks available in the cold storages at Guntur would be around 25 lakh bags (each containing 40 kg).As arrivals from Guntur have started in Tamil Nadu, the prices of 'Sannam' chilli have risen to Rs 40-50 in Virudhunagar and Chennai markets.The chilli prices are likely to be hot as supply from Tamil Nadu was expected to be delayed by one month (usually arrival in January) due to late sowing, the TNAU said.

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