The Domestic and Export Market Intelligence Cell of the Tamil Nadu Agricultural University has predicted that the price of red chill from February to March 2011 is likely to be between Rs. 3,500 and Rs. 3,700 a quintal.
A release from the university said the cell was making the prediction after analysing the monthly data of samba chilli prices that prevailed in the last 13 months in the Virudhunagar market.
It has asked farmers to keep in mind the aforementioned price while taking up chilli cultivation during the North-East monsoon period.
At present, the price in the Virudhunagar market was between Rs. 3,000 and Rs. 3,500 a quintal for non A/C and Rs. 4,000 and Rs. 4,500 a quintal for A/C crop.
The release also said that due to increased cold storage capacity in Andhra Pradesh, carryover stocks were more this year.
Compared to .8 lakh tonnes last year, this year's stocks were around 5.5 lakh tonnes.
And, in Karnataka many farmers were expected to shift the area from chilli to maize and cotton, the major competing crops in that region. Hence, the production and in turn the market arrivals of chilli in Karnataka was expected to be less during the season.