The prices of dried chilli pepper (Shankyun and Moe Htaung varieties) registered sharp upward moves to K7,500 per viss (a viss equals 1.6 kg).
The prices surged from K4,500 per viss recorded on 1 June to K7,500 per viss in the third week of June, reflecting an increase of over K2,000 per viss within over 20 days.
The price rise is attributed to the strong demand by Thailand when local production of fresh chilli pepper declines, said an official of U Thein Win commodity depot in Mawlamyine city.
“India cannot export chilli pepper to Thailand due to heavy rainfall and low production. So, Thailand purchases chili peppers from Myanmar again,” he added.
Additionally, high input costs such as fertilizer and fuel oil for farming machinery are also contributing factors to the sharp rise in prices.
Cultivation of chilli pepper varieties that are primarily demanded by China costs K2.5 million per acre on their own farmland and K2.5 million for rental management. The chilli pepper can be harvested every 15 days up to six months. Yield is estimated at 100 viss per acre in the early season. It can produce 400-500 viss in maximum.
The prices of chilli pepper are expected to remain high on the back of robust demand tracking high input cost and fuel oil, traders shared their opinions.
Myanmar’s chilli pepper is primarily sent to Thailand and China via cross-border trade channels, while it is shipped to Viet Nam through maritime trade.
It is commonly grown in Ayeyawady, Mandalay and Magway regions and Shan State.
The export varieties of fresh chilli peppers are 692, 777, 999, Demon, Sunshine and Lucky one.—NN/GNLM