Chilli has been bullish over the past week. Declining arrivals at spot market of Guntur further added to the upside, and so did heavy rains on Friday. Chilli is expected to extend the positive trend on follow through buying in coming week. Good demand from local traders and stockiest is likely to support the prices. Strong export demand from Bangladesh, Malaysia might also support the prices. However, rising arrivals as market is going to be closed for month from 20th May are likely to create little pressure on prices but these corrections are expected to create buying opportunity in market. Turmeric has been witnessing lot of volatility over the past few weeks. Farmers reduced supply to markets to increase the prices, but stockiest are not interested in bulk buying for anything above Rs 10,000 per quintal. However, overall trend is bearish in near term as peak arrival season will prolong this year amid increased production (turmeric production in 2011 is estimated around 65 lakh bags against 45-48 lakh bags last year). Also demand from other part of country has slowed down which is weighing on the price. |
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