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Chilli Report Karvy

Chilli Report Karvy

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Published by: api-3833893 on Oct 18, 2008
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03/18/2014

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- Seasonal Outlook on Chilli
Hot Chillies Getting Hotter \u2026\u2026
KARVY Commodities Research
Disclaim er

The report contains the opinions of the author, which are not to be construed as investment advices. The author, directors and other employees of Karvy and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above mentioned opinions are based on the information which are believed to be accurate and no assurance can be given for the accuracy of these information. There is risk of loss in trading in derivatives. The author, directors and other employees of Karvy and its affiliates cannot be held responsible for any losses in trading.

KARVY Commodities Broking Ltd is engaged in commodities broking business in I ndia. For opening a commodities trading account contact 91- 40-23388708, 91-40-23312454 or any of the nearby Karvy branches. Mail us at commodit

y @
karv
y
.com
Introduction

Chilli is the most widely used and universal spice of India. Chillies belong to the genusc a p s i c u m , under thes o l a n a c e a e family. It is also called as the nature\u2019s wonder. India is the only country in world to have different varieties with rich quality factors. During the 16th century Portuguese have introduced the chilli to India and conceived to have been originated from South America. There are two important commercial qualities; some varieties are famous for red colour because of the pigment capsanthin and others are known for biting pungency attributed by capsaicin. Its fruit appears in different sizes, shapes and colour. India has immense potential to grow and export different types of chillies required by various markets around the world. The main quality parameters in Chilli are colour, length, width, skin thickness and pungency. There are about 70 varieties of Chillies grown in Andhra Pradesh itself and major varieties areGu n t u r

Sannam, Pala, Teja, Roshini and Guntur byadagi.The sowing season
begins in August and extends till October and arrivals starts from February
to March.
Name in International Languages
Hindi
Lal- Mirch
Spanish
Pimenton
French
Puvre de Guinee
Germ an
Paprika
Arabic
Filfil Ahmar
Dutch
Spaanse Peper
Italian
Peperone
Portuguese
Pimento
Russian
Struchkovy pyeret
Japanese
Togarashi
Chinese
Hesiung Yali chiao
Supply and Demand Dynamics
I ndian scenario

India is the largest producer and contributes 25% to total world production. It is also largest consumer and exporter of Chilli. Chilli is the most common spice cultivated in the country. Of the total production about 30% are of pungent having International trade and India is among the top. India has produced about 1175900 tones of Chilli with area of 811020 ha during 2003-04 declined from 1046220 tonnes in 1998-99. India had bumper crop from 1998 to 2001 with finer average yield of 1174.25 kg/ha. Better crop and higher yield levels led to fall in the prices and it influenced the farmers to shift their production to other cash crops like cotton, sugarcane etc. Area and production seems to continue to decline as depicted in the chart below.

Area and Production of Chilli in India
100000
300000
500000
700000
900000
1100000
1300000
1970-71
1972-73
1974-75
1976-77
1978-79
1980-81
1982-83
1984-85
1986-87
1988-89
1990-91
1992-93
1994-95
1996-97
1998-99
2000-01
2002-03
Year
Area&Produc
tion
Area (ha)
Production (Tonnes)

The production of Chilli for 2006 estimated to wane by 35 to 40 percent. This is mainly because of heavy rainfall. About 30 to 35 percent of the crop is estimated to damage due to floods in the major producing regions of South India. The Area under Chilli for 2006 is estimated around 30000- 32000 hectors when compare to 350000 ha in 2005. About 40% production is expected to be less compared to previous year.

In India, Chillies are grown in almost all the state throught the length and breadth of the country. Andhra Pradesh is the largest producer of Chilli in India contributes about 27% to the total area under Chilli, followed by Karnataka (19%), Maharashtra (12%), Orissa (9%), Tamil Nadu (8%) and other states contributing 18 % to the tot al area under Chilli.

About 30-35 % of the crop is estimated to be damaged due to heavy

rains.

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