Despite higher arrivals, firm demand from stockists and exporters for the new crop supported chilli prices. The 334-variety chilli in Guntur fetched Rs.5000 ($101.86, €75.71, £64.20) per 100 kg. Chilli arrivals in Guntur were around one hundred thousand bags (1 bag = 45 kg), up from near 80,000 bags on previous trading day. However, increase in daily arrivals amidst good output estimates may cap sharp gain in chilli prices.
Chilli acreage in Andhra Pradesh, the largest producer of the spice in the country, was at 51,923 hectares, up by 19.1 percent compared to same period last year, according to latest data by the state agriculture department.
Price outlook for the day is mixed. We expect NCDEX March contract to test the support of Rs.5200 ($105.94, €78.74, £66.76) with resistance being Rs.5500 ($112.05, €83.28, £70.62) per quintal (per 100kg)