Most chilli contracts except February contracts traded up on short covering after prices slumped in the last week due to the onset of fresh crop arrivals in the spot market. However, the overall fundamentals still remain weak due to diminished domestic and export demand.
According to sources, chilli output in the current crop year is likely to rise by 15-20 percent to around 1.1 million tonnes. Carryover stocks of chilli in the year 2012 are seen at around 10,000 tonnes, down from 30,000 tonnes a year ago. India’s chilli exports fell 20 percent to 153,500 tonnes in April-December 2011, as per latest data released by Spices Board.