Mumbai: India is likely to export a record 190,000 tonnes of red chilli in 2007-08, a 28% increase, due to strong demand from competing countries, an official from the Spices Board said.
Spiced up: India is likely to export a record 190,000 tonnes of red chilli in 2007-08 due to increased demand from neighbouring countries.
India, the world’s biggest producer and consumer of red chilli, had exported 148,500 tonnes in 2006-07.
“This year, overseas demand is good... Considering present trend we could export 190,000 tonnes by March end,” the official said on Monday.
In the first eight months of the financial year 2007-08, India exported 128,000 tonnes of the red spice, a hike of 56% from the previous year.
“Low (crop) output in China has helped India. This year, too, its crop was not good and this will help Indian exporters throughout the year,” the official said.
India and China are the largest exporters of chillies in the world with 25% and 24% share in total global exports, respectively. The official said, Malaysia, Bangladesh, Sri Lanka and Pakistan have been the main buyers of the spice in 2007-08.
“This year production will increase due to increased acreage, but the rising export will also support prices,” said Alepata Srinivas Rao, a trader based at Guntur in Andhra Pradesh. Trade experts say production would increase to 1.4 million tonnes (up by 17%) in 2007-08. India usually exports about 10% of its output.
The board had set an export target of 135,000 tonnes for 2007-08.
“Presently, there is a shortage of good quality chilli. But from February new arrivals will increase in the spot market and export also (will increase),” the Spices Board official said.
The rupee rose more than 12% against the US dollar in 2007. The benchmark February contract on the National Commodity and Derivatives Exchange Ltd was trading up 0.63% at Rs3,839 per 100 kg.