Chilli prices unlikely to flare up after lockdown
Red chilli prices may not flare up after the lockdown with an increase in demand as there is sufficient stock in cold storages in Andhra Pradesh and Telangana, the chief producers of the spice.
The harvest in both the states is almost over and most of the stock has gone to cold storages in the absence of trading. Other than small quantities going for export, there has been hardly any local demand in the last one month.
“The production is almost same as last year and almost 95% have gone to cold storages which are getting packed to the full,” said Ravipati Peraiah, MD of Vijayakrishna Spice Farms.
The peak prices have dropped by over 12% to Rs 140 per kg with demand drying up. Last December chilli rose to Rs 215 per kg on severe shortage.
He reminded the Telugu Desam Party that in its poll manifesto during 2014, it had promised to set up a price stabilisation fund with a corpus of Rs 5,000 crores to provide remunerative prices to crops, but it had failed to fulfill the promise. That was why farmers of chilli, turmeric and other crops were suffering great hardship in the State, Jagan Mohan Reddy alleged.