MUMBAI (Commodity Online): Chilli futures plunged Thursday due to the profit taking by speculators, taking the spot market reports. However, chilli exports and prices are expected to rise this winter. Export orders are coming in from Bangladesh, Malaysia and Sri Lanka.
NCDEX chilli December futures slumped 3.53 percent to the low of Rs 6334 per 100 kg and the open interest dropped 4.31 percent, indicating profit taking. The counter now quoted at Rs 6,385, down 2.75 percent over last close.
The demand from the two Asian countries was in addition to regular export orders. India exports nearly 20% of its chilli production. Malaysia, Bangladesh, Sri Lanka, the U.S. and UAE are major markets for Indian chilli.
Trade sitting at the comfort of home. Start with a mere 50$Chilli, which contributed 40% by volume to India's 470,520 tonne spices exports during 2008-09, has been hit by global economic slowdown.
In 2008-09 India has exported 188,000 tonne of chilli and chilli products valued Rs 10.81 billion as against 209,000 tonnes valued Rs 10.97 billion in 2007-08.
India is one of the world's major producers and consumers of chilli, producing around 1.2-1.3 million tonne of chilli on 600,000-700,000 hectares. Low rains in the chilli growing areas had affected sowing during July- August and then floods in states like Andhra Pradesh and Karnataka created fears of crop damage
