Chilli, considered a native of South America, is an indispensable spice in the food habits of most people in the world. The colour and pungency differentiates chillies from other spices. Apart from culinary purposes, chillies are also used in medicinal applications and beverages.
Global Output
Global output of chillies is estimated to be around four million tons per year. Leading chillin producing countries are India, China, Pakistan, Morocco, Mexico and Turkey.
Global Demand
In terms of quantity, chillies contribute nearly 22 percent of the global spice trade.
Indian Output
India is the largest producer and consumer of chillies in the world with a contribution of nearly 25 percent of the global output. The average production in India is estimated to be around slightly above one million tons per year. Andhra Pradesh is the leading producer accounting for nearly 46 percent of the total output. Karnataka, Maharashtra, Orissa, West Bengal, Tamil Nadu and Madhya Pradesh also contribute significantly to India’s chillies production.
Price Formation
Climatic conditions and global demand-supply are the major variables that make chillies hotter in terms of price. Since India is the largest producer and consumer of chillies, any decline in output would have an immediate impact on prices.
Crop Season and Physical Markets
Chillies are cultivated in many parts of India and the crop is available throughout the year. The major harvest season is between December-March with supply reaching peak levels in February-April. Planting is held mainly during August-October. The main physical market of chillies in the country--Guntur in Andhra Pradesh--is also rated as the largest of its kind in Asia. In peak season, the Guntur market alone handles nearly one billion bags of chillies (a bag contains 35-50 kg) worth Rupees 500 crore. Other major markets are Khammam and Warangal in Andhra Pradesh and Bellary and Raichur in Karnataka. Over 30 percent of chillies produced in India are converted into powder with brands accounting for slightly over 5 percent of the powder.
Main Varieties
Several varieties of chillies are available in India. Most popular amongst them are Sanam, Bydagi, Wonder, Hot, Jwala and LC334.
Exports
India is also a major exporter of chillies as it contributes nearly 33 percent of the total quantity of Indian spice exports. Major destinations of Indian exports are countries in West Asia, Far East, USA, Sri Lanka and Bangladesh. India also exports chillies oleoresins in good quantities.
India\'s Forex reserves fell to $311.79 billion, down by $691 million for the week ended June 27 as against $ 312.481 billion in the last week, RBI said in its weekly report.
Forex dealers said the rupee drew support from a firm trend in local equity market but was still under pressure due to fresh surge in crude oil prices.
Indian rupee opened trading in a positive note Friday as investors covered their short positions but with oil holding above $145 a barrel and shaky stock markets raising prospects for more capital outflows, gains may be limited.
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