Guntur sizzler loses momentum, but may gain from export uptake

Teja, one of the most sought after dry red chilli varieties which had dramatically peaked at Rs.140 per kg during the previous two years has plateaued over the three months this year with the prices declining to between Rs.80 to Rs.90 per kg.

The sizzler from Guntur, which is a hot favourite both in Indian and international markets accounts for nearly 50% to 60% of the total procurements.

According to projections dry red chilli production is likely to increase by around 15% to 20% this year which is resulting in apprehensions that the near stagnant trend in prices, except for minor variations, would continue.

However, according to market experts the increase in production is unlikely to lead to a further decline of prices.

In fact, according to them, there is also a likelihood of an uptrend in prices with steady pickings from India’s biggest importers like Vietnam, Thailand and Malaysia.

In addition to this, China’s procurement is also indicating an uptrend, due to which there is possibility of an increase in prices. The total chilli production in India ranges between 12 to 14 lakh tonnes and Guntur accounts for 6 lakh to 8 lakh tonnes depending on the climatic conditions.

One of the redeeming factors for volatile India’s chilli segment has always been exports, as trends indicated. India, which is the biggest exporter of chillies in the world, has been maintaining a steady and consistent run on the international markets.

The value of exports had increased by 23% to around Rs. 2307 crore during April-Sept (2016) from around Rs. 1879 crore during the same period in the previous fiscal. There was also an increase in price increased from Rs. 106 per kg to to 139 Kg.

Teja variety constitutes nearly 50% of the chilli crop grown in Guntur basically because of huge demand for this variety. The preference for this variety can also be attributed to the fact that Teja has high resistance to pests and viruses, due to its’ innate pungency.

Teja’s output and prices are also higher than all other varieties, though not as high as the hybrid ones. Dry red Chilli varieties are categorized according to not only their colour and intrinsic pungency, but also according to their capsaicin values. Rohini, Teja, Kiran and Ankur varieties being the most popular among the 12 grades produced in Guntur district.

Guntur Sannam S17 or Teja, which has a 32.11 colour value and 0.226% of capsaicin, is considered the spiciest of all the varieties.