Pdf of chilly
- 1. RED CHILLIES Introduction Chilli (botanically known as Capsicum annuum L.; Capsicum frutescene L.), also called red pepper belongs to the genus capsicum, under the solanaceae family. They are believed to have originated from South America. Chillies are referred to as chillies, chile, hot peppers, bell peppers, red peppers, pod peppers, cayenne peppers, paprika, pimento, and capsicum in different parts of the world. However, in general the chillies are the smaller-sized, more pungent types, while the somewhat larger, mildly to moderately pungent types are capsicums. The pungency is due to the active principle `capsicin’ contained in the skin and the septa of the fruit. Chillies are valued principally for their high pungency and for their colour. Chilli forms an indispensable culinary spice in several parts of the world. It is also used in beverages and in the preparation of medicines. Agronomy: Climate, soil and Rainfall: The chilli crop is grown from almost the sea-level up to an altitude of 1,500 -2100 meters in tropical and subtropical regions, with an annual rainfall of 60-150 cm. Chillies are grown in variety of soils provided they are well drained, well aerated and rich in organic matter. Black soils that retain moisture for long periods are suitable for rain fed crop whereas well-drained chalka soils and sandy loams are good under irrigated condition. Chilli crop is sensitive to cold and frost and it requires warmer climatic conditions as compared to tomatoes. The crop requires around 4-5 months for complete maturity that is around 120-160 days with an optimum temperature of 20-27 degree Celsius. In India, chillies are now grown in almost all parts. Very high rainfall during its growth is harmful. When grown in the hot weather or in lower-rainfall tracts, it is cultivated as an irrigated crop. The winter crop is planted from July to September and the summer crop in February and March. Whereas these are the two important seasons for its cultivation, a third crop, known as the mid-season (May-June) crop, is also taken in certain parts of the country. The chilly plant lasts for one season only. It is plucked 3 to 4 times in the season. The crop becomes ready for harvesting in about 3.5 months after planting. The picking of ripe fruits continues for about 2 months and about 6-10 pickings are taken. If there is a demand for green chillies, the first one or two pickings are taken for this purpose. The summer crop is wholly disposed of as green chillies. Ripe fruits are picked along with stalks and are heaped indoors for 3 or 4 days for the partially ripe fruit to develop the proper red colour. They are then dried in the sun for 4 to 5 days, depending upon weather conditions and are graded for size and colour before marketing. Harvest Chart JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC INDIA MOROCCO SRILANKA TANZANIA Uses of Chilli: The spice has innumerable uses for commercial, nutritional as well as medicinal. It is used for preparation of oleoresin that has great export potential and demand in the world market. Chillies are excellent source of Vitamin, A, B, C and E with minerals like molybdenum, manganese,
- 2. folate, potassium, thiamin, and copper. In addition, medically used as pain killer, Antibiotic as well as included in Ayurvedic medicines. The medicinal properties in chillies help to combat various disease like cancer, heart attack and Lung diseases. World Scenario Apart from India, South Africa (South Africa, Malawi and Zimbabwe), China, Pakistan and Mexico are other major producing and exporting countries. These are mostly low or medium pungency varieties like Indian S4 chillies, Tiensin Chinese chillies or Pakistan Dandicut chillies. Malawi, Zimbabwe and Uganda export limited quantities of the highly pungent "East African Birdseye type, and China exports some high pungency types (Fukien). India faces competition mainly from China and Pakistan who offer chillies at low prices in international markets.Imports as whole chillies have fallen in the world market as exports of chilli powder and oleoresin have grown. There are a number of factories in India, Pakistan and China set up in collaboration with multinational spice companies, which are now able to produce chilli powder to meet EC and ASTA hygiene standards. Among the European Union countries, UK is by far the most important importer of chillies, reflecting its colonial heritage and large ethinic community, with the Netherlands the second largest importer. The world demand is expected to go up, consequently there expected to be a great scope for export of chillies. Demand is growing for value added products using chillies such as chilli paste, curry powders and other sauces for the convenience food industry. Some of these are produced at origin but stringent hygiene and quality control level must be maintained. In the extraction industry, there is always demand for high capsaicin content (over1%) chillies, as this offers extractors a direct saving on unit costs of extraction. The best opportunities for new suppliers lie in production of selected varieties of high capcaisin chillies for the extraction market, and in supplying niche retail markets for selected high colour high pungency whole chillies. Indian Scenario Production India is the world’s largest producer, consumer and exporter of chillies in the world. India also has the largest area under chillies in the world. Chillies are the most common spice cultivated in India. It is grown nearly in all parts of the country, hills and plains. Chilli production is spread throughout the length and breadth of the country, with almost all the states producing this crop. It can also be grown during the entire year at one or the other part of the country. However, the major arrival season extends from February to April. The crop planting starts from August and extends till October. While, the harvesting begins from December with 5% of the arrivals usually reported in this month. The peak arrivals are reported in February to March. The market remains active till May. The major producers are Andhra Pradesh, Karnataka, MP, Orissa, Maharashtra and Tamil Nadu. Andhra Pradesh alone commands around 53.27% of the chilli production in India. The major chilly growing districts of Andhra Pradesh are Guntur, Warangal, Khammam, Krishna and Prakasham. Chilli has well established spot markets. Guntur, Warangal, Khammam in Andhra Pradesh; Raichur, Bellary in Karnataka are the major spot markets at the production centers. As per the latest statistics, India produced 1009481 tons of dry chilli during the year 2005-06. Production Shares of Major Chilli Producing States AREA PRODUCTION State Area (Ha) %Share Production (MT) %Share Andhra Pradesh 171450 25.15 537710 53.27 Gujarat 31650 4.64 37840 3.75 Karnataka 69880 10.25 94500 9.36 Madhya Pradesh 46660 6.85 42480 4.21
- 3. Maharashtra 99300 14.57 51214 5.07 Orissa 75120 11.02 63290 6.27 Punjab 9882 1.45 15888 1.57 Rajasthan 17720 2.60 17530 1.74 Tamilnadu 49033 7.19 31830 3.15 West Bengal 51957 7.62 60727 6.02 Utter Pradesh 17340 2.54 16119 1.60 Assam 14690 2.16 9490 0.94 Others 26930 3.95 30863 3.06 Total : 681612 100 1009481 100 India’s Production of Chillies Year Area (hectares) Production (tons) 1999-00 977530 1056000 2000-01 884040 1046220 2001-02 881290 1113090 2002-03 827930 849250 2003-04 794080 1273860 2004-05 771240 1237781 2005-06 681612 1009481 Source: Spices Board, India (latest available as of Feb 2008) Guntur is Asia’s largest market for chillies. The marketing season begins in the first week of March and peaks during the month of April, and closes by the middle of May. Around 35-40% of the crop that arrives here is estimated to be stored in the cold storages present at Guntur and surrounding areas. Normally, about 80 lakh to one crore bags of chillies (each bags carries approximately 35 to 50 kgs) is traded during the season in Guntur market alone. The market players estimate that trade worth nearly Rs 500 crores takes place in Guntur during season. Besides the highly popular Guntur Sannam (S-4) variety, other hybrid varieties like Wonder Hot, Ankur, Namdhari, and Indam 5 are traded in this particular market. It is estimated that there are a 100 odd exporters in this market. It is estimated that around 25-30% of the chilly crop is used for powder preparation, with the branded chilly powder manufacturers accounting for around 5% of the total volume. Imports and Exports India’s chilly exports are on a positive note currently and chilli exports ranks first as compared to other spices. The exports of chillies has increased significantly from 2003-04 onwards. However, the country imports very small quantity of chilli. India exports chillies in the form of dried chillies, chilly powder, picked chillies and chilly oleoresins. Indian chili is mainly exported to USA, Sri Lanka, Bangladesh, the Middle East and the Far East. The highly pungent "Sannam" & the mildly pungent 'mundu' chilies are internationally popular varieties. India also offers 'gospurea chlli'. Chillies are exported as whole, with or without stalks & with clipped stalks and fresh and dried capsicum and as powder, oils and oleoresins. Byadgi chilli grown in Dharwad district of Karnataka and Tomato chillies of Warangal, Andhra Pradesh are demanded for their high colour value. India’s Chilli Exports
- 4. Year Quantity (tons) Value (Rs cr) 1999-00 63,591 254.72 2000-01 62,448 229.73 2001-02 69,998 252.44 2002-03 81,022 315.15 2003-04 86,575 366.88 2004-05 138,073 499.01 2005-06 113,174 403.01 2006-07 148,500 807.75 India’s Chillies Imports Year Quantity (MT) Value (Rs cr) 1999-2000 618 4.97 2000-01 449 4.69 2001-02 1,114 4.31 2002-03 1,638 10.25 2003-04 2,138 12.24 2004-05 680 3.02 2005-06 935 4.50 Trade Characteristics • Well-established spot markets at Guntur, Warangal, Khammam in Andhra Pradesh; Raichur, Bellary in Karnataka are the major price reference points, as these are based at the production centers. • The trade channel involves several members viz., a village level trader, commission agent, wholesaler, retailer, agents for exporters and exporters. The commodity changes hands several times, exposing all these members to price risk. • Guntur is Asia's largest market for chillies. Normally, about 80 lakh to one crore bags of chillies, weighing approximately 35 to 50 kgs is traded during the season at Guntur market alone. The marketing season begins in the first week of February, peaks during the month of April, and closes by the middle of May. • The market players estimate that trade worth nearly Rs 500 crores takes place in Guntur during season. During the peak arrival period around 0.8 - 1 lakh bags of 35-50 kg is traded here daily. • Around 35-40% of the crop that arrives at Guntur, is estimated to be stored in the cold storages present at Guntur and surrounding areas. Market Influencing Factors • The commodity displays high volatility, with the prices heavily dependent on season, production in different producing tracts spread across the country, demand from exporters and the stock available at the cold storages.
- 5. • The prices of the major chilly varieties sold in the country are correlated with each other. As a result, the players in other varieties can also hedge their risks through this single variety. Warehouses & Locations NCDEX/NCMSL accredited warehouses are available at locations like Pls. visit http://www.ncdex.com/downloads/WH_List_10012006.doc for latest NCDEX list of accredited warehouse at different locations MCX accredited warehouses are available at locations like: Pls. visit http://www.nbhcindia.com/Designated_Warehouses.pdf for latest list of MCX list of accredited warehouse at different locations DELIVERY CENTERS: NCDEX: Main Delivery Centre: Guntur (up to the radius of 50 kms from the municipal limits) Additional Delivery Centre: Warangal (up to the radius of 50 Kms from the municipal limits) MCX: Main delivery centres: Guntur Contract Specifications: NCDEX: Chilli (Paala) traded as LCA 334 Medium Best ex Basis warehouse Guntur inclusive of all taxes Basis Price Ex-Guntur exclusive of all taxes Unit of Trading 5 MT Quotation/Base Value Rs Per Quintal Tick size Re.1.00 Delivery Unit 9 MT with tolerance limit of 500kg MCX: Basis LC334 Chilly New Crop Basis Price Ex-Guntur exclusive of all taxes
- 6. Unit of Trading 3 MT Quotation/Base Value Rs Per Quintal Tick size Re.1.00 Delivery Unit 9 MT with tolerance limit of 500kg Appendices: Varieties The varieties under cultivation differ in the size, shape, colour and pungency of the fruits. The fruits may be thin and long large and thick, short and bell-shaped, small and round. The unripe fruits may be green, creamy, yellow or orange. Similarly, the ripe fruits may be of different shades of red. They variety with bell-shaped fruits is the least pungent and is cooked as an ordinary vegetable. Capsicum annum and G. frutescens are the two principle species grown in India and the varieties of the former constitute the chief source of the dry chilli of commercial use. The world and India as a nation boasts of a bewildering variety of chillies. The major varieties of India are Birds Eye Chilli (Dhani), Byadagi (Kaddi), Ellachipur (Sannam S4 Type), Guntur Sannam S4 Type, Hindur S7, Jwala, Kanthari White, Kashmir Chilli etc. Sannam S 4 variety is most popular variety, with its annual production estimated to be around 3 lakh tons a year. It is also the major variety that is exported. Utilization and Demand All chillies contain a pungent principle made up of capsaicinoids. Dry chillies (or pungent capsicums) are widely used throughout the world to add pungency to food. Chilli oleoresin is used in the food processing and pharmaceutical industry. Fresh chillies are also an important export item but they are considered a vegetable not a spice. Chilli has two important commercial qualities. If some varieties are famous for red colour because of the pigment casanthin, others are known for biting pungency attributed by capsaicin. India is the only country rich in many varieties with different quality factors. There is wide range of products based on whole or ground chilli entering world trade. The terminology for these products can be confusing, and definitions can vary between and even within markets. Chillies are used in whole dried or chopped form or as a ground powder. Chilli paste and chilli sauce are also frequently sold. Oil and oleoresin is the most important value added product of chillies. The key parameters for any dried chilli products are pungency level (measured in % capsaicin or Scoville Units) and color (measured in ASTA color units). In addition, size and appearance may be important. Producers should be sure that they understand exactly what the market requires.