Amaravati: With the increase in demand for Devanur Deluxe (DD), a variety of red chilli in the international market, its price on Thursday reached new heights. The chilli is selling at Rs15,800 a quintal, the highest price in the last decade. The DD chilli is thick red in colour and has more oil content than other varieties.
People in Bangladesh, Malaysia, Singapore, Sri Lanka and Mauritius use this variety to make powder that is used in pickles. Similarly, Teja variety is selling at Rs 13,500 per quintal, which was sold at Rs 11,500 per quintal last year. While Badiga variety is being sold at Rs13,000 per quintal, 310 variety touched Rs 12,500 per quintal.
Even common variety of chillis are being sold at Rs 9,000 to Rs10,000 per quintal in the Guntur Mirchi Yard. According to the market yard officials, red chilli crop was damaged in the State due to deficit rainfall and pest attacks. The yield this season was 40 per cent less than that of last year. Similarly, the chilli production in MP, Gujarat, Orissa and Maharashtra had fallen due to adverse seasonal conditions and this led to the increase in demand for good quality chillis in the international market.
With the demand reaching all time high, the exporters are purchasing good quality stock at higher price to make a fast buck. A Sambasiva Rao a chilli farmer in Tadikonda said, “The traders are offering high price and more than 70 per cent of farmers have already sold chili stocks.”
Every year the farmers in Guntur and Prakasam districts keep more than 10 lakh bags of chilli for reserve in various cold storage units. This year the reserves depleted to 1 lakh bags due to fall in yield but as of now there is reserve stock in the cold storage units in the district.
Guntur Mirchi Yard secretary K Rama Mohan Reddy said that the chilli purchases are expected to be completed by March.