Trading Chili

[italkcash]

Chilies or red chilies are also one of the highly traded commodities when it comes to commodity trading. Red chilli looks much similar to the green chilli but has a stronger taste. Chilli is initially known to be grown in South America and it is a known fact that it is one of the largely used spices all over the world.

Chilli comes from the family of capsicum. It is technically known as Capsicum annuum or Capsicum frutecens. The chilli is small in size and is usually dark rich red in color and also has an acidic flavor. The chilli powder is also used for many purposes like in food and is also known to have some medical uses as well.

The plant of chilli has a white flower and the leaves are green in color. The plant does not grow over 1.5 meters in height. Red chilli is also known to be rich with vitamin A, vitamin C and vitamin E.
Chilli powder is used all over the world in many cuisines. It is almost used by different cultures from around the world. It is also replaced by pepper in many recipes as well.

Production of Chilies:



It is estimated that the annual production of chilli is about 7 million tons and is known to be cultivated in around 1.5 million hectares of land. The world leaders in production of chilli are China and Pakistan and India is next to them. Majority of production takes place in the Asian countries itself.
Majority of usage of chilli is in the food industry. The countries which top the usage of chilli are India, china, Mexico, Thailand, United states of America, United Kingdom, Germany and Sweden.
The above stated countries are also the major leaders in exporting chilli. The countries which import chilli are United Arab Emirates, European countries, Sri Lanka, Malaysia, Japan and Korea.

Trading of chilli


Chilli is traded in the Indian markets on the exchanges National Commodity and Derivatives Exchange of India limited and also on the Multi Commodity Exchange of India Ltd.

Some of the factors which influence the trade of chilli in commodity market are the seasonal price changes, the production of chilli in the country, world demand, the availability of stored stock and also depends on hedging which takes place in between the various varieties of chilli. The major factor influencing is the supply and demand. If there is more supply and less demand the price might come down and when the demand is more and there is huge supply, the price tend to increase. The same factors also apply when it comes to world demand and trading in world markets.

The main physical market in India is in Guntur of Andhra Pradesh. This is also said to be the largest in the Asian market. There are also many varieties of chilies available in the Indian market. Some of the most popular varieties are the Sanam, Bydagi, Wonder, Hot, Jwala and the LC 334.

India is also known to be the major exporter of Chilli contributing to about 33 % of the combined world exports.