Tamil Nadu - Coimbatore   

Export demand will help red chilli farmers, says TNAU

Coimbatore: The Tamil Nadu Agricultural University has advised the farmers to take up sowing of chilli during the north-east monsoon period as it is confident its price will be boosted by the export demand.

According to a university release, chilli growers are anxious to know whether they can begin sowing in November and in such a case what is the likely price it would fetch during harvest (January-February 2010).

In this regard, the National Agricultural Innovation Project-Domestic and Export Market Intelligence Cell, functioning at the university, made a study in the major chilli growing tracts of Tamil Nadu – Ramanathapuram, Virudhunagar, Paramakudi.

In addition, it held discussions with Chennai traders.

The release points out that India is both the largest producer and consumer of red chilli in the world. It contributes as much as 36 per cent to the world chilli production.

Red chilli was cultivated in 67,000 hectares in Tamil Nadu in 2007-8, almost 10 per cent higher than the previous year. But the increase in area did not help production which was 21 per cent less than the previous year. This was due to the unexpected rainfall during harvest seasons.

India has immense potential to export different types of chillies required by various markets around the world.

Chilli exports had been rising over the last few years due to increased demand and short supply from other major producing countries like China and Pakistan. Indian chilli is exported to Sri Lanka, Mexico, and the US, Nepal, Bangladesh and Gulf countries.

During April-August 2009, India exported 1.66 lakh tonnes of chilli valued at Rs 947 crores as against more than 1.76 lakh tonnes valued at Rs 940 crores during the same period the previous year.

According to the TNAU cell, domestic and export demand are set to support the prices this year also.

It points out that normally the price of chilli slumps during January to March due to heavy arrivals and thereafter surges during April_due to domestic demand and slow down in arrivals.

Currently, the price of Virudhunagar Samba chilli is trading in the range of Rs 4,250-4,500 per quintal in Tamil Nadu.

Econometric analysis of 12 years monthly data of Virudhunagar samba chilli market revealed that for the upcoming months (from January) the price of chilli is expected to be in the range of Rs 4700-4,800 per quintal.

“Traders also opined that the price of chilli will not be affected by the selling pressure created by Tamil Nadu and Andhra arrivals due to export demand.”

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Spurious ISI-marked pumps seized
Unscheduled power cut irks domestic consumers
Lorry owners plan protest
Corporation’s demolition team gets down to work
Pre-exam training
Export demand will help red chilli farmers, says TNAU
Verification of certificates
Training
Notice to pensioners
Corpn. begins fumigation in schools

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu