GUNTUR: Export of chillies to China have been stopped for the past one month. Initially, trade was supposed to resume on February 2. However, the holidays were extended to February 9 due to fear regarding the spread of coronavirus.

Traders are hopeful that business with China will be brisk after trade is resumed on Monday. All India Exports Traders’ Association (AIETA) president Velagapudi Sambasiva Rao said the market price of chillies is up by 20 per cent this year as compared to last year’s price during January and February.
Chinese traders purchased substantial quantities of the stock well before the trade was stopped in anticipation of Chinese New Year celebrations.

“Trade was supposed to resume in the first week of February but was delayed due to the outbreak of coronavirus. The holidays may be extended if the situation there does not come under control. We are in touch with Chinese traders and they have started enquiring about chilli prices and availability of produce.”
The AIETA president said the Chinese prefer the pungent Teja variety chillies, which are available in India.

“The Teja variety of chillies are produced by farmers of Andhra Pradesh, Telangana and Madhya Pradesh.”

Guntur Market Yard secretary M Venkateswara Reddy said that every year, Chinese traders purchase red chillies worth Rs 3,600 crore, while those from Bangladesh, purchase stock worth Rs 1500 crore. The yard registers business to the tune of Rs 6,000 crore every year.  

“Sri Lanka, Indonesia and Thailand also import chillies from India. When compared to last year, the farmers are getting good prices for their produce and the profits may rise further in the coming days if exports go up,” Venkateswara Reddy said.