Poor chilli crop in China is hot news for Indian farmers
M ENOSH JEREMIAH
TIMES NEWS NETWORK[ TUESDAY, DECEMBER 16, 2003 01:03:19 AM ]

HYDERABAD : Indian chillies are expected to be in hot demand in south-east Asian and Middle-Eastern countries next year, following the forecast of a good crop in India and lower output in neighbouring China . Poor chilly crop in China, coupled with prospects of a better crop of the same in India are set to push up chilly exports in the coming year as compared to this year, Mr Kilari Venkata Rosaiah, president of Chillies Traders Association in Guntur, a major hub for chilly trading in Asia, told ET.

The traders expect increased demand for Indian chillies in the coming year from countries like Singapore , Malaysia , Burma , and also from the UAE and other Gulf countries, due to expected fall in Chinese chilly exports to these countries.  According to estimations made by traders in Guntur , the volume of chilly exports this year would be around 70,000 tonnes only as against 83,000 tonnes last year. The lower exports are attributed to crop failure in many chilly growing areas of the country due to drought as well as higher domestic prices that they have commanded this year.

However, the situation is set to be reversed in the coming year, with the domestic output going up by almost 25% following a fairly good monsoon, which will have a positive impact on the export front with export volumes expected to cross the 80,000-tonne mark once again next year, said Mr Rosaiah. He also expected chilly prices in the domestic market to rule high in the coming trading season beginning February/March when the new crop starts arriving into the Guntur chilly market.

Officials of the AP Horticulture Department also confirmed that the chilly crop is much better this year compared to the last crop, with the output set to cross 3 lakh tonnes compared to a little over 2 lakh tonnes registered last year.

The harvesting has begun on a small scale in major chilly growing areas of the state like Guntur , Warangal , Prakasam, Khammam, Nalgonda, and Karimnagar. Reports from those places speak of a higher yield this year, they said, but warned that the current cyclonic conditions, if they worsen, could damage the crop. The east coast of the state is experiencing rains and heavy winds since Sunday evening due to a cyclonic storm gathering in the Bay of Bengal .