By NNN-Bernama
New Delhi : Malaysia, the biggest importer of Indian chillies, can look forward to cheaper chillies from the sub-continent in the coming months.
This is due to the expected surge in the production of the cash crop in India, due to better monsoon last year.
As Indian farmers are expected produce about 1.1 million metric tonnes of chillies during the harvest season from January to April, market watchers this time around, predict a 15 percent rise in production.
India and China are two major chilli exporters in the world, with India contributing at least 25 percent of the global supply.
Malaysia is the biggest buyer of Indian chillies – 43,625 metric tonnes of the cash crop was imported last year – followed by Bangladesh (28,425 tonnes) and Sri Lanka (21,822 tonnes).
Pressure on the price of chillies is likely to abate, with improved output from Indian farmers this season.
Indian Tobacco Company’s (ITC) International Business Division vice-president Ninad Bhosle said that while a metric tonne of chillies to Malaysia cost RM3,762 (US$1,150), today’s price was cheaper by RM327 (US$100).
“Prices will ease if production remains steady and surely, chillies to Malaysia will be cheaper.
“Malaysia and Indonesia have kept away from the Indian market because prices were above RM3,271 (US$1,000) but they are coming back because prices are now at the RM3,434 (US$1,050) level,” Bhosle told Bernama.
ITC is India’s second largest exporter of agricultural products.
Exporters foresee that demand for Indian chillies from traditional buyers like Bangladesh and Malaysia was growing on an average of 20 to 25 percent annually, due to its quality and competitive pricing – encouraging more Indian farmers to shift to chilli cultivation which is more lucrative, as compared to turmeric, another cash crop.
“There is an increase of about 10 to 15 percent in cultivated areas due to farmers getting less income from turmeric and better price realisation last year.
“Exports to countries like Malaysia and Bangladesh was also high last year, making chilli cultivation attractive,” said Indian Spices Exporters Forum chairman Sushama Srikandath.
In the chilli-planting belt – largely scattered in the fertile southern region of India – namely Andhra Pradesh, dubbed the “Chilli Bowl of India” as it produces nearly 46 percent of India’s chillies, Karanataka, Maharashtra and Tamil Nadu — acreage for chilli cultivation has increased significantly.