Chili Futures Prices Fall amid Falling Demand

Chilli futures continued to fall in the domestic markets on Tuesday on the back of extended selling by the traders amid falling demand from the domestic as well as overseas buyers. Moreover, heavy arrivals from producing belts also dampened the sentiment in the chilli prices. Moreover as per sources, India’s chilli crop this year is expected to be higher in the range of 12-13 lakh tonnes. Price for the July delivery fell as much as 1.89 percent on the NCDEX. India is the largest producer and consumer of chillies in the world with a contribution of nearly 25 percent of the global output.

Chili average production in India is estimated to be around slightly above one million tons per year. India is also a major exporter of chillies as it contributes nearly 33 percent of the total quantity of Indian spice exports.

Chilli futures for July 2012 contract closed at Rs 4976 per Quintal, down by 1.54 per cent. It touched the low of Rs 4960 after opening at Rs 5042 against the previous closing price of Rs 5054.