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Market News
AP big player as chilli exports hit 10,000 cr.
Jul 27, 2023
Riding on the massive demand from global markets, chilli exports from India crossed 10,000-crore mark during 2022-23. With AP being the leading producer, about 50 per cent of the stock was exported from the state. The total exports from India were just around 6,500 crore in 2019-20.
The continuous export orders helped farmers make huge returns during the just concluded sale season. The crop in the Indian market usually enters around the middle of December while the markets start flooding with the stocks by middle of January.
The unexpected rains and floods during last November-December damaged chilli crop in many districts of the state. The crop output was reduced by at least 30-40 per cent leaving farmers worried over facing huge losses. Luckily, a booming export market brought cheers to the faces of farmers.
The prices in retail market have continuously hovered around 20,000 per quintal, which is an all-time high in recent history. The average price farmers fetched last year was around 10,000-12,000 per quintal. In fact, a price not less than 8,000 per quintal is said to be remunerative to recover the costs.
However, the overall cost went up due to the damage of over 30-40 per cent crop.
Interestingly, prices, which would normally go up after the farmers selling their stocks, remained high right from the beginning of the season and stable throughout till the completion of sales. This helped farmers make a killing during the last season. The sale value jumped by almost 25 per cent despite a dip in the volume of total exports during the 2022-23.
High prices in the export market helped the traders as well as the farmers. The total volume of exports witnessed a fall of nearly 40,000 tonnes when compared to last year’s exports. The chilli exports were steadily going up from India due to the demand from European countries, China, Sri Lanka and the USA.
India exported nearly 6.46 lakh tonnes making 9,241 crore during 2020-21 when the entire world was stalled following the outbreak of Covid-19. Trade analysts say that the demand for chilli will continue to go up in the coming season too based on positive inputs from global exporters.
timesofindia.indiatimes.com
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